The proposed bill would establish the Digital Assets Strategic Reserve Fund, which would be administered by the State Treasurer and consist of appropriated funds and seized digital assets. The bill introduces new provisions that require the State Treasurer to deposit seized digital assets using secure custody solutions or exchange-traded products from registered investment companies. It also sets a limit on investments, prohibiting the State Treasurer from investing more than 10% of the total fund in any fiscal year. Additionally, the bill allows the State Treasurer to loan digital assets from the fund to generate returns, provided that such loans do not increase financial risks to the state.

Furthermore, the bill defines "digital assets" to include various forms of virtual currencies, coins, and tokens, and introduces specific definitions for terms such as "cryptographic private key," "qualified custodian," and "secure custody solution." These definitions aim to clarify the types of digital assets covered under the new fund and the security measures required for their management. Overall, the bill updates current statutes to incorporate the management and investment of digital assets by the State Treasurer, ensuring a structured approach to handling these emerging financial instruments.

Statutes affected:
Introduced Version: 41-180
Senate Engrossed Version: 41-180