State representative Jason Powell introduced a bill to Tennessee’s state legislature that, if passed, would allow the state to invest in crypto and NFTs. It would do so by amending the state government’s list of “permissible investments.”

Why should we care?
Powell’s bill is a ballsy and symbolic attempt to woo crypto players to the state, and is likely to be met with public blowback. Although state investment in blockchain-based assets and currencies would signal a friendly regulatory landscape to crypto miners and investors, it would also relocate some state coffers into more volatile markets—potentially at the expense of constituents. To date, public investment in crypto initiatives has had less than rosy results. MiamiCoin, for example—a crypto token that offers part of its proceeds to the city of Miami—has lost 87.9% of its value since its all-time high. El Salvador’s president, meanwhile, has probably cost his country $71M since he began buying Bitcoin in September 2021. At this stage, we may see more states make token investments in crypto (pun intended), though more substantive overtures are likely to emerge once stablecoins and less volatile forms of crypto emerge.