SB 178: State Depository Board; allow the state treasurer to invest in Bitcoin; provide

Georgia law currently lists the specific types of investments the State Depository Board can let the state treasurer put state money into, things like U.S. government bonds, commercial paper, and highly rated corporate debt. This bill adds Bitcoin to that list. The bill caps any Bitcoin investment at 5 percent of any given fund. It also creates a new Code section spelling out how any Bitcoin the state buys must be held: directly through a secure custody system controlled only by the government entity, through a qualified bank or trust company custodian, or through an exchange traded fund product. It defines terms like Bitcoin, private key, qualified custodian, and secure custody solution, and sets detailed technical security standards, including geographically separated data storage and regular security audits. The board could also let the treasurer loan out these digital assets, as it already can with other securities, as long as doing so does not increase financial risk to the state.

• Adds Bitcoin to the list of assets the State Depository Board may let the state treasurer invest state funds in.
• Limits any Bitcoin investment to no more than 5 percent of any state fund.
• Requires Bitcoin holdings to be kept in a secure custody solution, with a qualified custodian, or in a regulated exchange traded product.
• Defines new terms including Bitcoin, private key, qualified custodian, and secure custody solution in a new Code section (50-17-68).
• Sets detailed technical security requirements for storing Bitcoin, such as encrypted access, geographically diversified data centers, and regular audits.
• Allows the board to permit the state treasurer to loan Bitcoin holdings, similar to existing rules for lending other securities, if it does not raise the state's financial risk.

The State Depository Board and the Office of the State Treasurer, which would gain new investment authority and new custody obligations; qualified custodians such as banks and trust companies that might hold state Bitcoin holdings; and indirectly Georgia taxpayers, since state funds would be at stake in any Bitcoin investment.

If enacted, part of Georgia's state funds could be invested in a highly volatile digital asset for the first time, subject to a 5 percent cap and specific security rules. This changes how conservatively the state manages public money and introduces new custody and risk considerations for the treasurer's office.

• Section 1 amends O.C.G.A. § 50-17-63(b) to add Bitcoin, as defined in new Code Section 50-17-68, to the list of permitted state investments.
• 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) caps Bitcoin investment at no more than 5 percent of any fund.
• Section 2(c) requires Bitcoin to be held via a secure custody solution, a qualified custodian, or a registered exchange traded product.
• Section 2(d) allows the board to let the treasurer loan digital assets if 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 treasurer
• cryptocurrency regulation
• public funds management
• state depository board