The two bills introduced on Feb. 2 propose allowing the state of Tennessee as well as its counties and municipalities to invest in crypto, as well as forming a committee aimed at studying crypto and blockchain.
Jason Powell, a member of the Tennessee House of Representatives, has introduced a bill proposing counties, municipalities, and the state to invest in cryptocurrencies and nonfungible tokens, or NFTs.
According to Tennessee House Bill 2644 introduced on Feb. 2, Powell proposed amending the current state code to add crypto, blockchain, and NFTs to the list of authorized investments for the counties, state, and municipalities to make with idle funds. Lawmakers assigned the bill to the House Finance, Ways, and Means Subcommittee on Feb. 8 for further consideration.
The legislation was the second related to crypto and blockchain introduced by Powell. The same day, he asked Tennessee lawmakers to consider forming a study committee aimed at making the state “the most forward thinking and pro-business state for cryptocurrency and blockchain and to foster a positive economic environment for blockchain and cryptocurrency.” Tennessee House Bill 2643, should it be passed by the legislature, would appoint the state’s commissioner of commerce and insurance, currently Carter Lawrence, to chair the committee with members including a representative with “experience or knowledge in cryptocurrency” and another with knowledge of federal securities laws.
Among the proposed study committee’s duties would be to review data on crypto and blockchain across the United States, determine the status of laws applicable to the crypto space, study NFT use cases and regulations, open a dialogue with industry experts, and present recommendations on potential legislation to promote Tennessee as a blockchain and crypto hub. The group’s first report would be due by Dec. 31, 2022, with the law expected to take effect by July 1 if approved by lawmakers.
Powell seemed to be hedging his bets on the aforementioned legislation, however, as he also proposed a bill which would direct the Tennessee Advisory Commission on Intergovernmental Relations to conduct a similar study on crypto and blockchain laws across U.S. states due at roughly the same time. In 2018, he introduced a bill which would have recognized the use of smart contracts in the state.
Because of the 10th amendment of the U.S. Constitution, lawmakers in states and at the federal level often cross paths to determine which body governs certain aspects of business and trade. The result is what many industry experts have described as a patchwork of legislation which crypto firms must navigate to legally operate in the United States.
In 2021, many local and state officials jumped on the bandwagon to promote their areas as having crypto-friendly regulations or other incentives for the space. In December, Florida Governor Ron DeSantis proposed the state government allow businesses to pay fees with cryptocurrencies including Bitcoin (BTC), while a bill signed by Kentucky Governor Andy Beshear in March reduced the sales tax burden of crypto miners operating in the state.