Tennessee Is Closer to Barring Retirement Funds from Crypto Investments

The Tennessee Senate Ways and Means Committee has voted to advance a bill banning public retirement trusts from investing in cryptocurrencies.

AccessTimeIconMar 9, 2018 at 6:00 p.m. UTC
Updated Sep 13, 2021 at 7:40 a.m. UTC

A measure to bar public retirement funds from investing in cryptocurrencies is moving ahead in the Tennessee Senate.

As previously reported, twin bills filed in January would block the trustees of public, post-retirement benefit funds from making such investments. On March 6, the Tennessee Senate Ways and Means Committee cleared the measure by a 10-0 vote, passing it along to the full chamber for further consideration.

The bill, sponsored by Senator Bill Ketron (R-13), is identical to one being considered in the state's House of Representatives. Public records indicate that the House's Ways and Means Committee will take up the measure next week.

, sponsored by Representative Michael Curcio (R-69), also amends the Tennessee Code, specifically amending Title 8, Chapter 27, Part 8 to include "notwithstanding any law to the contrary, the trustees shall not invest in any cryptocurrency" as part of its statutes, as previously reported.

specifically deals with investment schemes for public employees. Trustees of the fund are charged with managing their finances and operation. It enables trustees to not only invest funds in legal investments, it also provides powers to work with different entities as well as to contract out the services required to maximize an investment.

An amendment to both bills would allow educators participating in post-employment benefits investment trusts through local agencies to continue doing so. While it is not explicitly stated, it seems to indicate that these trusts can potentially be invested in cryptocurrencies without impacting educators.

If passed, this would mark the first time public trustees would be banned from investing in cryptocurrencies for retirement funds.

Tennessee flag image via Shutterstock


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.