US: Tennessee to Allow Cryptocurrency Investments if Proposed Bill Passes
Tennessee House of Representative Jason Powell has proposed a bill that would allow Tennessee and other municipalities to buy and invest in bitcoin, cryptocurrencies, and non-fungible tokens (NFTs). With the introduction of the Tennessee Senate Bill 2644, the state government would invest in bitcoin. The Tennessee Office of Financial Planning identified the potential for bitcoin investment.
Tennessee Seeks to Be US’s Top Hub for Bitcoin Investors
This bill is expected to help the state government manage its portfolio more effectively and efficiently. It will also make it easier for the government to invest in other cryptocurrencies in the future if needed.
On the same day, Powell initiated Tennessee House Bill 2643, which would create a blockchain and cryptocurrency research committee to “assist in determining what to do to make [Tennessee] the most forward-thinking and pro-business hub for cryptocurrencies, as well as to promote a positive economic climate for blockchain and cryptocurrency,” according to the bill text.
The envisaged committee would meet at least monthly. It would be made up of the commissioner of trade and insurance or their designees; commissioner of financial firms or their designees; a representative from an academic institution, a consultant with experience or knowledge in cryptocurrency, from a tutorial establishment, determined by the chair; a consultant from a financial institution, as assigned by the house of representatives speaker; and one consultant with experience in federal law enforcement.
The US Stand on Crypto Investments
In recent months, the US has sent conflicting signals on cryptos. While several states in the United States have turned crypto-friendly, Capitol Hill has adopted a stricter stance on digital assets. At the start of 2022, legislators have been actively presenting Bitcoin-related proposals. A bill introduced by Senator Wendy Rogers from Arizona proposed to make Bitcoin legal cash in the state of Arizona. If passed, the bill will allow citizens to use bitcoin to pay bills, public charges, taxes, and dues and establish bitcoin as a legal medium of exchange in Arizona.
A total of seventeen states have adopted legislation or passed resolutions on cryptocurrencies. Arizona, for instance, established a blockchain and cryptocurrency research group.
Arkansas revised the Uniform Money Services Act to cover virtual currency and clarified control of virtual currency under the Uniform Commercial Code.
Hawaii passed a resolution asking the state’s department of commerce and consumer affairs to reconsider its 2016 ruling on asset reserve requirements for virtual currency and cryptocurrency businesses doing business in the state and align its asset reserve requirements with those in other states.
While Powell’s approach is progressive, it is yet to be seen if Congress will support it.
Policymakers and even the International Monetary Fund have expressed worryies about digital assets.
In recent months, both have expressed concerns about financial stability. Concerns and calls for an international crypto regulatory framework have prompted the White House to issue an executive order. The IMF’s latest verdict on central bank digital currencies could be a roadblock for Powell and other crypto proponents in Tennessee.
