Tennessee lawmaker proposes allowing the state to invest in cryptocurrencies and NFTs

A bill introduced in Tennessee’s legislature would, if approved, allow the state and other municipalities to invest in cryptocurrency and non-fungible tokens (NFTs).

House Bill 2644, according to public records, was introduced on February 2 and, per its summary, “authorizes a county, municipality, or the state to invest in cryptocurrency, blockchains, and non-fungible tokens.” It does so by amending parts of state law pertaining to permissible investments and, in the case of counties, the allowed use of “idle funds.” 

Per LegiScan, the measure has been referred to a subcommittee within the House Finance, Ways, and Means Committee for future consideration. It is unclear at this time as to how much support this measure will attract. 

The bill was filed by state representative Jason Powell. Powell has also introduced a separate measure that, if approved, would create a study commission focused on cryptocurrency and blockchain. 

Public records indicate that 2022 could be a notable year for state-level, crypto-focused legislation, with recent attention being drawn to an effort in Arizona to declare bitcoin as legal tender, though that effort is unlikely to succeed given the US Constitution’s provisions on legal tender.