Tennessee Lawmaker Proposes Bill to Allow Crypto Investment

Bob Mason
Updated: Feb 10, 2022, 06:10 UTC

One lawmaker is looking to make Tennessee a crypto hub following in the footsteps of Miami City and NYC. White House scrutiny could be an issue, however.

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It’s been mixed messages from the U.S on cryptos in recent months. While a number of U.S states have become crypto friendly, Capitol Hill has taken a sterner approach on digital assets.

U.S Crypto Advocates

In 2021, the City of Miami and New York City introduced their own CityCoins,  MiamiCoin (MIA) and NewYorkCoin (NYC Coin). CityCoins, powered by Stacks (STX), allows miners to stake STX and earn CityCoins as rewards. CityCoins miners receive 70% of all stacked STX in CityCoins, with 30% going to City Wallets. These are equivalent to a city’s treasury. Miners can then further stake the rewarded CityCoins to earn Bitcoin (BTC).

The principle is to allow the citizens of a city to support a city’s development. In the case of Miami City, Mayor Francis Suarez is aiming at making the city a tax free, crypto haven. Aligned with Mayor Suarez, Florida State Governor DeSantis affirmed last week that the state would allow businesses to pay state fees in crypto.

Mayors of both the City of Miami and New York City had confirmed that they will receive Bitcoin salaries at the start of the year. While a number of lawmakers on Capitol Hill are also crypto advocates, the number of crypto friendly U.S states are few and far between.

Tennessee Looks to Become a Crypto Hub

In spite of increased crypto scrutiny on Capitol Hill, Tennessee lawmaker Jason Powell has introduced 2 bills. The first bill proposes to allow counties, municipalities, and the state to invest in digital assets including cryptos and NFTs. Powell also proposed a study committee tasked with making the state “the most forward thinking and pro-business state for cryptocurrency and blockchain and to foster a positive economic environment for blockchain and cryptocurrency”.

While Powell’s move is a progressive one, it remains to be seen whether lawmakers will favor such a move. Regulators and even the IMF have voiced concerns over digital assets. Both have cited risks to financial stability in recent months. The concerns and calls for a global crypto regulatory framework have also led to an imminent executive order from the White House. For Powell and other crypto advocates in the State of Tennessee, the IMF’s latest assessment on central bank digital currencies could also be a hinderance.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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