TN HB1695

Authorizes the Tennessee State Treasurer to invest up to 10% of the general fund, revenue fluctuation reserve, and other designated state funds in bitcoin, with purchases limited to 5% per fiscal year until the cap is reached

Requires bitcoin holdings to be secured through direct state custody, a qualified custodian (regulated bank or trust company), or SEC/CFTC-approved exchange-traded products, with no single individual or entity able to control complete private keys

Mandates the treasurer implement internal self-custody procedures by July 1, 2028, holding at least 10% of state-owned bitcoin directly, and file an investment-policy statement with the state funding board by January 1, 2027

Permits the treasurer to establish a voluntary program accepting bitcoin for payment of state taxes and fees, with received bitcoin transferred to the general fund at market value

Requires biennial public reporting on holdings, transactions, and realized gains, plus cryptographic proof-of-reserves verification, with a comprehensive performance evaluation due to the General Assembly by October 1, 2032