Tennessee Moves Closer To 10% Bitcoin Allocation Framework

Tennessee’s Strategic Bitcoin Reserve Act has been recommended for passage and formally referred to the Finance, Ways, and Means Committee for review.

If approved, the bill would authorize the state treasurer to allocate up to 10% of eligible public funds into Bitcoin.

What The Bill Authorizes

The legislation amends Tennessee Code Annotated, Title 9, Chapter 4, and introduces what is formally cited as the “Tennessee Strategic Bitcoin Reserve Act.”

The bill states that persistent increases in the general price level reduce the real purchasing power of state-held assets. It identifies Bitcoin as a decentralized digital commodity with a limited supply and deep, 24-hour global liquidity.

Under the proposal, a prudent investor acting in a fiduciary capacity may diversify into such an asset to improve long-term, risk-adjusted, inflation-adjusted returns for public portfolios.

The bill makes clear that allocation would be capped at 10% of eligible state funds and subject to custody, security, and reporting safeguards.

Committee Stage Signals Progress

Moreover, a referral to the Finance, Ways, and Means Committee marks a very important step in the legislative process. At this stage, lawmakers will review fiscal impact, risk controls, and implementation structure before any floor vote.

However, the bill does not mandate immediate Bitcoin purchases. It authorizes the state treasurer to allocate capital within defined limits if the measure becomes law.

Part Of A Broader State-Level Bitcoin Push

Tennessee’s bill follows a broader trend across US states where authorization frameworks are established first, followed by phased execution.

Missouri recently advanced House Bill 2080 to the House Commerce Committee. The measure seeks to create a Bitcoin Strategic Reserve Fund within the state treasury and would allow the state treasurer to accept Bitcoin donations, invest state funds into Bitcoin, and hold assets for a mandatory five-year period before any sale or conversion.

At the federal level, a strategic Bitcoin reserve was established in 2025 following an executive order signed by President Donald Trump. The federal structure limited the reserve to seized digital assets.

New Hampshire authorized its state treasurer to allocate up to 10% of state funds into digital assets or precious metals with a market value above $500 billion.

Texas created its own reserve framework and later purchased approximately $5 million worth of the BlackRock iShares Bitcoin Trust (IBIT) ETF as well.

Related: Missouri Advances Bitcoin Strategic Reserve Bill HB 2080