Tennessee To Ban Retirement Funds From Crypto Investments

News, Regulation | March 12, 2018 By:

A bill that aims to obstruct government retirement funds from investing in cryptocurrencies is moving ahead in the Tennessee senate.

Senate Bill 2508, which was introduced by Republican Senator Bill Ketron on February 1, would block the trustees of public, post-retirement benefit funds from making crypto investments. The bill passed by a vote of 10-0 in the Finance, Ways & Means Subcommittee on March 6 and will now move forward to the legislative chamber.

Senate Bill 2508 is identical to House Bill 2093 which was introduced on January 30 by Republican representative Michael Curcio. House Bill 2093 proposes to change the Tennessee code, and particularly how trustees can invest by amending “Title 8, Chapter 27, Part 8” and adding a new definition.

The new guidelines would prohibit “the trustees of any defined contribution plan or related investment vehicle established as a health benefit by the state insurance company from investing in any cryptocurrency.” The bill is set to move to the Finance, Ways & Means Subcommittee on March 14.

If passed, this would mark the first time public trustees would be banned from investing in digital currencies for retirement funds.

In January of this year, two senators, Lee Harris and Jeff Yarbro, introduced Senate Bill 1662. The bill seeks to “recognize the legal authority to use blockchain technology and smart contracts in conducting electronic transactions; protects ownership rights of certain information secured by blockchain technology.” The bill has passed in the Tennessee senate on March 8.