SB228: SB228 State Depositories; State Depository Board to allow the state treasurer to invest in bitcoin; provide

Currently, Georgia law (O.C.G.A. § 50-17-63) lists specific investments the State Depository Board can let the state treasurer make with state funds, such as U.S. government bonds, commercial paper, and highly rated corporate and foreign bonds. This bill adds bitcoin to that approved list. The bill also creates a new Code section (50-17-68) defining bitcoin as a decentralized digital asset that operates without a central authority or banks, and defining 'cold storage' as a secure, offline method of storing the digital keys needed to access it. It requires the state treasurer, working with the State Depository Board, to write policies and procedures for accepting, storing, and transacting in bitcoin, including possibly using approved U.S.-based custodians. Any bitcoin the state receives or owns must be held under those rules. The bill repeals any conflicting laws but does not state a separate effective date beyond standard enactment.

• Adds bitcoin to the list of assets the State Depository Board may authorize the state treasurer to invest state funds in, alongside bonds and commercial paper.
• Creates a new legal definition of bitcoin as a decentralized digital asset run by a peer-to-peer network with no central authority or banks.
• Defines 'cold storage' as a secure, network-isolated method for storing the private keys needed to access bitcoin.
• Requires the state treasurer, in consultation with the board, to write formal policies for safely accepting, storing, and transacting in state-owned bitcoin.
• Allows the state to use approved United States based custodians to hold bitcoin on the state's behalf.
• Requires that all bitcoin the state receives or owns, including through investments, be held according to these new security policies.

The state treasurer and the State Depository Board, which oversee how Georgia invests public funds, are directly affected. The change could also involve third-party custodial firms approved to securely hold bitcoin for the state.

If enacted, Georgia's state government could hold bitcoin as part of its investment portfolio for the first time, exposing state funds to a highly volatile asset. The required security policies aim to prevent theft or loss of any bitcoin the state ends up owning.

• Section 1 revises O.C.G.A. § 50-17-63 to add 'bitcoin, as such term is defined in Code Section 50-17-68' to the list of investments the board may allow the treasurer to make.
• Section 2 creates new Code Section 50-17-68, defining 'bitcoin' and 'cold storage' for purposes of state law.
• Section 2 requires the state treasurer, with the board, to develop policies for accepting, storing, and transacting bitcoin using secure custodial technology and cold storage.
• Section 2 allows the use of qualified, U.S.-based custodians approved by the board to hold the state's bitcoin.
• Section 2 requires that all bitcoin owned by the state, including from investments, be held according to these new policies.
• Section 3 repeals any conflicting laws.

1. 2025-02-21Senate Read and Referred (Senate)
2. 2025-02-20Senate Hopper (Senate)

• Jason Esteves (D, SD-035)Primary sponsor
• Kim Jackson (D, SD-041)
• Elena Parent (D, SD-044)
• Derek Mallow (D, SD-002)
• Harold Jones (D, SD-022)
• Greg Dolezal (R, SD-027)

• bitcoin
• state investments
• cryptocurrency
• state treasurer
• public funds