Tennessee Introduces Bill to Add Bitcoin to State Financial Reserves

Tennessee's state legislature is evaluating a proposal that would permit the state treasury to include bitcoin in its investment portfolio as a measure against inflation ^[1].

House Bill 1695, titled the Tennessee Strategic Bitcoin Reserve Act and sponsored by Representative Jody Barrett, would authorize the State Treasurer to invest in bitcoin using portions of the general fund and revenue fluctuation reserve ^[1]. The legislation caps bitcoin holdings at 10% of each eligible fund, with annual purchases restricted to 5% until that threshold is met ^[1].

The proposal explicitly limits investments to bitcoin alone, prohibiting other digital assets, and establishes strict custody requirements including offline storage of private keys across multiple locations with multi-party authorization ^[1]. The bill also mandates biennial public reporting on holdings, transaction activity, and cryptographic proof of on-chain balances ^[1].

Barrett characterized the measure as responsible management of public resources, positioning bitcoin as comparable to gold for hedging against currency devaluation ^[1]. The legislation reflects a broader trend among U.S. states, with similar bills under consideration in South Dakota, Kansas, Rhode Island, and Florida ^[1].

If approved by the 114th Tennessee General Assembly, the act would become effective in mid-2026, with a comprehensive program review scheduled for 2032 ^[1].