The proposed bill seeks to 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 imposes 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, provided that such loans do not increase financial risks to the state.

Furthermore, the bill defines "digital assets" to encompass various forms of virtual currencies, including cryptocurrencies and non-fungible tokens, and introduces specific definitions for terms such as "cryptographic private key," "qualified custodian," and "secure custody solution." The fund's monies would be continuously appropriated and exempt from lapsing, ensuring that they remain available for use. Overall, the bill aims to modernize the state's approach to managing digital assets while ensuring financial prudence and security.

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