NASHVILLE, Tenn. — January 21, 2026 — The 114th Tennessee General Assembly will consider the adoption of the state’s first “Tennessee Strategic Bitcoin Reserve Act” in the current legislative session, positioning Tennessee to become the fourth state to enact such a measure. House Bill 1695, sponsored by Rep. Jody Barrett (R–Dickson), was filed on January 15 and authorizes the State Treasurer to allocate a limited portion of select state funds to bitcoin under robust security, reporting, and governance standards.
“This is about responsible stewardship of public finances,” said Representative Barrett. “Bitcoin, like gold, is a form of sound money. We want the citizens of Tennessee to benefit from the independence and security that only sound money can provide, especially as a prudent hedge against inflation.”
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. The bill also creates a voluntary program for taxpayers to pay certain state obligations in bitcoin. The legislation entrusts implementation to the State Treasurer's office, which manages one of the nation's top-rated pension systems and has a long record of sound asset management. A comprehensive review is required by October 2032, at which point the legislature may continue, revise, or repeal the program.
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.