Tennessee Bill Would Let State Use Up to 10% of Public Funds to Buy Bitcoin
Tennessee Representative Jody Barrett introduced House Bill 1695 to create a "Tennessee Strategic Bitcoin Reserve," authorizing the state treasurer to invest public funds in Bitcoin (BTC). The bill, now under review by the House Government Operations Committee in the 114th Tennessee General Assembly, caps BTC holdings at 10% of an eligible fund’s assets and limits annual purchases to 5% of a fund until the cap is reached. Investments are restricted to Bitcoin only; other crypto assets are excluded. The treasurer must implement custody and security measures, establish reporting requirements, and by July 2028 set up internal self-custody capable of holding at least 10% of the state’s BTC. Biennial holdings and performance reports to the legislature are required, and a full statutory review may occur in 2032. The bill cites inflation hedging and long-term diversification as motivations. HB1695 remains in committee and has not passed; if enacted, Tennessee would join other U.S. jurisdictions exploring formal Bitcoin reserves, a development that could bolster institutional acceptance and market sentiment around BTC.
Bullish
Authorizing a U.S. state to buy Bitcoin with public funds, even subject to limits and custody requirements, is likely to be interpreted by markets as a positive institutional signal for BTC. Short-term impact: modest bullish — the bill is still in committee, so immediate buying pressure is limited, but announcements and committee progress can lift sentiment and trigger speculative flows. Long-term impact: stronger bullish — if enacted, the law would add a precedent for public-sector demand and regulatory acceptance, potentially encouraging other states or institutions to consider similar allocations. Restrictions (10% cap, 5% annual purchases, BTC-only, custody requirements) moderate risk and reduce chance of abrupt large purchases, which tempers volatility. Overall, the net effect on BTC price expectation is positive as it reinforces adoption narratives and institutional demand pathways.