The two bills introduced on February 2 would allow the state of Tennessee to invest in crypto and form a committee dedicated to studying the crypto industry.
Amendment To Let State Invest In Crypto
A member of the Tennessee House of Representatives, Jason Powell’s new bill (Tennessee House Bill 2644) proposes that counties and municipalities belonging to Tennessee as well as the state itself should be able to invest in digital assets like cryptocurrencies and NFTs. The proposal initially was formed as an amendment to the current state code that lists authorized asset classes that the state entities can invest in with idle funds. The bill has been assigned to the House Finance, Ways, and Means Subcommittee for further consideration.
Proposal For Crypto Committee
Earlier that day, Powell had already proposed another bill related to the crypto and blockchain industry. His proposed Tennessee House Bill 2643 appealed to the state’s lawmakers to consider forming a committee that would study the intricacies in the blockchain and crypto world to ensure the state’s progress as a forward-thinking and pro-business state for the industry. He also claimed in his proposal that such a committee would help foster a favorable economic environment for the crypto industry and thus attract the attention of crypto experts and enthusiasts. Powell had been proposing similar bills for quite some time now. Back in 2018, he had introduced a bill focusing on the use of smart contracts in Tennessee.
Proposed Committee Duties
Furthermore, the committee would need to analyze data on crypto and blockchain from across the country to ascertain the status of laws that govern the space. The committee would also communicate with industry experts and promote Tennessee as a blockchain and crypto hub through legislation.
If the bill is passed, the role of the head of the committee will fall upon Carter Lawrence, who is the current commissioner of commerce and insurance in the state. In addition, the committee members would need to include a representative who is experienced in cryptocurrency and another who understands federal securities laws.
States Legislations Regarding Crypto
The 10th amendment of the U.S. Constitution often leads to confusion among state and federal level lawmakers when trying to determine which body governs certain aspects of business and trade. This patchwork of legislation is a serious hurdle for the crypto industry to overcome and the introduction of Powell’s two bills might contribute to making it simpler for the state of Tennessee. Last year saw multiple states trying to inch ahead in the crypto race, vying for the unofficial position of ‘America’s crypto hub,’ by introducing crypto-friendly legislation.
For instance, at the Texas Blockchain Summit, Senator Ted Cruz announced that he would like to see the state become the center of the crypto universe. In addition, Kentucky Governor Andy Beshear had signed a bill in March 2021 to reduce the sales tax on crypto miners operating in the state.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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