Tennessee lawmakers are considering legislation that would allow the state to hold bitcoin as part of its public financial reserves. House Bill 1695, known as the Tennessee Strategic Bitcoin Reserve Act, was filed earlier this month by Rep. Jody Barrett (R–Dickson). The bill is scheduled for consideration during the current session of the 114th Tennessee General Assembly. It would grant the State Treasurer authority to invest a limited share of select state funds in bitcoin.
The bill’s findings cite inflation as a central concern. Lawmakers state in the bill that rising prices erode the real purchasing power of assets held in the general fund, the revenue fluctuation reserve, and other state pools. Bitcoin is described in the legislation as a decentralized digital commodity with a fixed supply and global liquidity. The bill argues that a fiduciary investor may use such an asset to improve long-term, inflation-adjusted returns.
“This is about responsible stewardship of public finances,” Barrett said in a statement. He compared bitcoin to gold and framed it as a hedge against inflation. Tennessee follows a growing wave of U.S. states exploring Bitcoin-focused policy, with lawmakers in South Dakota and Kansas introducing bills that would allow public funds to be allocated to bitcoin or placed into a strategic Bitcoin and digital assets reserve. Under the proposal, the Treasurer could allocate funds from the general fund, the revenue fluctuation reserve, or other state funds approved by lawmakers.
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