Tennessee’s first ever bill to establish a state-level bitcoin reserve gains momentum with
co-sponsors and committee assignments.
The Tennessee Strategic Bitcoin Reserve Act is gaining momentum with Senator Kerry
Roberts (R-Springfield) signing on as the Senate sponsor, showing increased support for
the proposed legislation that was drafted and filed by Representative Jody Barrett (R-Dickson).
HB1695 / SB2639 authorizes the State Treasurer to allocate a limited portion of select state
funds to invest in bitcoin under robust security, reporting, and governance standards. Both
chamber bills have received committee assignments, including the Government Operations
Committee for Review as well as the Finance, Ways & Means Committee.
“In January of 2026 alone, five states introduced legislation to establish strategic bitcoin
reserves, with Florida, South Dakota, Kansas, and others recognizing the clear benefits of
incorporating Bitcoin into their reserves to safeguard against escalating financial uncertainty and
the erosion of fiat purchasing power, ” said Representative Barrett. “I’m proud to work with the
Tennessee Bitcoin Alliance, which, through the dedicated efforts of its volunteer members, has
played a key role in advancing this initiative. Such organizations are essential in helping
policymakers understand and responsibly embrace emerging technologies like bitcoin, showing
how ordinary citizens can drive meaningful legislative progress.”
The Tennessee Strategic Bitcoin Reserve Act identifies bitcoin as a decentralized digital
commodity with provable scarcity and deep global liquidity. The Act would permit limited
diversification into bitcoin to improve long-horizon, inflation-adjusted returns while requiring
institutional-grade safeguards.
“Tennessee holds over $132 billion in assets with one of the best managed portfolios in the
nation. But even the strongest balance sheet faces systemic risks that traditional assets can't
hedge. Bitcoin's neutrality and lack of correlation with conventional asset classes offers
something rare: true diversification," said David Birnbaum, President of the Tennessee Bitcoin
Alliance. “This bill gives Tennessee the flexibility to hold a modest bitcoin allocation, paired with
strict custody and transparency requirements to prudently strengthen the State’s financial
position over time.”
The bill caps exposure at 10% of eligible funds and phases in purchases at no more than 5%
per fiscal year, limited to bitcoin only. Holdings may be maintained through a qualified custodian,
an exchange-traded product, or a state-run secure custody solution. Within two years, the
Treasurer must establish internal self-custody and hold at least 10% of the state's bitcoin
directly. Biennial reports to the legislature, including on-chain cryptographic proofs, ensure full
public transparency.
About the Tennessee Bitcoin Alliance
The Tennessee Bitcoin Alliance (TNBTC) is a Nashville-based 501(c)(4) nonprofit whose
mission is to integrate bitcoin into commercial activity in Tennessee through public education
and policy advocacy. TNBTC aims to position Tennessee as the nation’s most bitcoin-friendly
jurisdiction. Learn more at tnbitcoinalliance.org.