SB 1373 Summary

• Establishes a digital assets strategic reserve fund administered by the state treasurer consisting of appropriated monies and seized digital assets held through qualified custodians or exchange-traded products.

• Restricts the state treasurer from investing more than 10 percent of total fund monies in any given fiscal year and permits loaning digital assets if it does not increase financial risk to the state.

• Defines "digital assets" to include virtual currency, virtual coins, and cryptocurrency such as Bitcoin, stablecoins, non-fungible tokens, and other on-chain assets conferring economic or proprietary rights.

• Requires digital assets be held in a "secure custody solution" meeting strict security standards including cryptographic private keys, encrypted environments, geographically diversified data centers, multiparty governance, regular audits, and disaster recovery protocols.

• Makes fund monies continuously appropriated and exempt from lapsing appropriation provisions.