A new bipartisan proposal in Tennessee could pave the way for the state—and its local governments—to invest in cryptocurrencies and non-fungible tokens (NFTs).
House Bill 2644, jointly introduced by Representative Jason Powell (D-Nashville) and Senator Paul Bailey (R-Sparta), was submitted to the Tennessee House on February 2 and is now under consideration by the Finance, Ways, and Means Subcommittee.
If enacted, the legislation would expand the list of permissible investment assets for state-run funds to include digital assets such as cryptocurrencies and NFTs. This would also apply to funds managed by Tennessee’s cities and counties.
Rep. Powell, who represents the tech-forward city of Nashville, emphasized the urgency of embracing blockchain innovation. “We need to act swiftly to ensure Tennessee remains competitive in the emerging digital economy,” Powell told CoinDesk. “Nashville is growing rapidly, and I want to make sure we cultivate a welcoming climate for all forms of technology. I’m a strong proponent of blockchain.”
Tennessee has already taken steps to attract crypto-oriented businesses and investors. Jackson, a city in the state, has seen Mayor Scott Conger vocally support cryptocurrency initiatives, including efforts to allow city workers to be paid partly in bitcoin.
Powell believes this type of legislation has bipartisan appeal. “More favorable crypto regulations can help bring more companies to Tennessee. That’s something that resonates with lawmakers across party lines,” he said.
As for the bill’s chances of passing, Powell remains hopeful. “I’m confident because there’s a shared interest among my colleagues in keeping Tennessee at the forefront of business innovation. We want to build a business-friendly environment that encourages new companies to join our ecosystem,” he said, noting his prior success in passing blockchain legislation in 2018 with cross-party support.
However, Powell acknowledged that one of the key obstacles remains a lack of understanding. “A lot of legislators, whether here or in D.C., don’t fully grasp the implications of blockchain,” he said. “That’s why I’m committed to continuing the dialogue. If this bill doesn’t pass now, I’ll keep pushing for policies that promote blockchain adoption in Tennessee.”