The Inflation Protection Act allows the treasurer of the state of Iowa to invest public moneys from the general fund, cash reserve fund, and Iowa economic emergency fund in precious metals, digital assets with a market capitalization exceeding $750 billion, and stablecoins, with a limit of 5% of the total amount in each fund. The bill defines key terms such as "digital asset," "precious metal," and "qualified custodian," and outlines the requirements for holding these investments. Digital assets must be secured through a secure-custody solution, by a qualified custodian, or as an exchange-traded product, while precious metals can be held physically, by a qualified custodian, or as an exchange-traded product.

Additionally, the bill stipulates that any tax or fee paid to the state in qualifying digital assets or stablecoins must be transferred to the general fund, with the original fund reimbursed in United States currency. If the digital asset does not meet the market capitalization requirement, it must be converted to U.S. currency. The treasurer is also permitted to loan digital assets to generate revenue for the state, provided it does not increase financial risk. The bill includes provisions for the treasurer to adopt rules for implementation.