Tennessee and Oklahoma Introduce New Strategic Bitcoin Investment Bills
Two state legislatures have introduced strategic bitcoin reserve legislation, with Tennessee's HB1695 and Oklahoma's SB1985 representing fresh approaches to integrating digital assets into public pension and treasury management.
Tennessee's HB1695, known as the Tennessee Strategic Bitcoin Reserve Act, would authorize the state treasurer to invest up to 10% of eligible state funds in bitcoin, including the general fund and revenue fluctuation reserve. The bill caps annual acquisitions at 5% until the 10% ceiling is reached, with strict custody and security requirements. Notably, the legislation mandates that by July 2028, the treasurer must implement an internal self-custody procedure holding at least 10% of the state's bitcoin holdings.
The Tennessee bill also includes provisions for accepting bitcoin as payment for state taxes and fees on a voluntary basis, with comprehensive biennial reporting requirements to legislative committees. If passed, the act would take effect July 1, 2026.
Oklahoma's SB1985, titled the Strategic Pension Protection Act, takes a different approach by focusing specifically on state retirement systems. The bill would allow pension funds to invest up to 5% of their assets in exchange-traded products backed by bitcoin or other digital assets with market capitalizations exceeding $500 billion. The legislation, introduced for the 2026 session, would become effective November 1, 2026.
Both bills cite inflation protection as a primary justification, with Tennessee's findings noting that bitcoin's limited supply and global liquidity make it suitable for long-horizon public portfolios. Oklahoma's approach follows the state's earlier failed attempt with HB1203 in 2025, which was narrowly defeated in the Senate.
The legislation reflects growing state-level interest in cryptocurrency adoption, with over two dozen states considering similar measures as they seek to diversify public assets and position themselves as technology-forward jurisdictions.