SB178: SB178 State Depository Board; allow the state treasurer to invest in Bitcoin; provide

Georgia law currently lists the types of investments the State Depository Board can let the state treasurer make with public deposits, such as U.S. government bonds, commercial paper, and certain foreign government securities. This bill adds Bitcoin, the decentralized digital currency, to that list of allowed investments. The bill caps any Bitcoin investment at 5 percent of any given fund and requires that any digital assets bought be held either through a secure custody solution controlled by the government, by a qualified custodian such as a chartered bank or trust company, or as an exchange traded product issued by a registered investment company. It also defines terms like private key and secure custody solution, spells out detailed security requirements such as encrypted, geographically separated storage, and lets the board permit the treasurer to lend the digital assets as long as doing so does not increase the state's financial risk.

• Adds Bitcoin to the list of assets the State Depository Board may let the state treasurer invest state funds in under O.C.G.A. § 50-17-63.
• Caps Bitcoin investment at no more than 5 percent of any single state fund.
• Requires any Bitcoin or digital assets purchased to be held via a secure custody solution, a qualified custodian, or an exchange traded product.
• Defines new terms including Bitcoin, exchange traded product, private key, qualified custodian, and secure custody solution in a new Code Section 50-17-68.
• Sets detailed technical security standards for a secure custody solution, including encrypted storage, geographic redundancy, and regular security audits.
• Allows the board to permit the treasurer to lend digital assets, provided the loan does not increase the state's financial risk.

The bill affects the Office of the State Treasurer, the State Depository Board, and the state agencies whose deposited funds could be invested. It also implicates qualified custodians such as banks and trust companies, and providers of digital asset custody technology that the state might use.

If enacted, Georgia's state treasury could hold a volatile digital asset alongside traditional investments like government bonds, subject to a 5 percent cap and specific custody rules meant to guard against theft or loss, changing how public funds are managed and secured.

• Section 1 revises O.C.G.A. § 50-17-63(b) to add Bitcoin, as defined in new Code Section 50-17-68, to the list of investments the board may authorize for the state treasurer.
• Section 2 creates new Code Section 50-17-68, defining Bitcoin, exchange traded product, private key, qualified custodian, and secure custody solution.
• Section 2(b) limits Bitcoin investment to no more than 5 percent of any fund.
• Section 2(c) requires acquired digital assets be held directly via secure custody, through a qualified custodian, or as an exchange traded product from a registered investment company.
• Section 2(d) allows the board to permit the treasurer to loan digital assets so long as it does not increase the state's financial risk.
• Section 3 repeals conflicting laws.

1. 2025-02-18Senate Read and Referred (Senate)
2. 2025-02-13Senate Hopper (Senate)

• Greg Dolezal (R, SD-027)Primary sponsor
• Brandon Beach (R, SD-021)
• Clint Dixon (R, SD-045)
• Jason Esteves (D, SD-035)

• Bitcoin investment
• state treasury
• cryptocurrency regulation
• public funds management
• digital asset custody