---
title: SB 178. State Depository Board; allow the state treasurer to invest in Bitcoin; provide
collection: bills
id: 2025-2026/sb178
cite_as: SB 178, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/sb178
md_url: https://georgiacommons.org/bills/2025-2026/sb178.md
text_url: https://georgiacommons.org/bills/2025-2026/sb178/text
source_url: https://www.legis.ga.gov/legislation/70371
date: 2025-02-18
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 95
omitted_url: https://georgiacommons.org/bills/2025-2026/sb178.md?full=1
bill_number: SB 178
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: Senate
bill_type: bill
status_date: 2025-02-13
last_action: Senate Read and Referred
sponsors:
- Greg Dolezal
- Brandon Beach
- Clint Dixon
- Jason Esteves
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/SB178/2025
upstream_id: 1970377
summaries_model: claude-sonnet-5
topic_tags:
- Bitcoin investment
- state treasurer
- cryptocurrency regulation
- public funds management
- state depository board
---
# SB 178. State Depository Board; allow the state treasurer to invest in Bitcoin; provide
## Text
Senate Bill 178
By: Senators Dolezal of the 27th, Beach of the 21st and Dixon of the 45th
A BILL TO BE ENTITLED
AN ACT
To amend Article 3 of Chapter 17 of Title 50 of the Official Code of Georgia Annotated,
relating to state depositories, so as to provide for the State Depository Board to allow the
state treasurer to invest in Bitcoin; to provide for a limit on such investment; to provide for
requirements for the safe handling of such assets; to provide for the loaning of such assets;
to provide for definitions; to provide for related matters; to repeal conflicting laws; and for
other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Article 3 of Chapter 17 of Title 50 of the Official Code of Georgia Annotated, relating to
state depositories, is amended by revising subsection (b) of Code Section 50-17-63, relating
to deposit of demand funds, investment of funds, reports, remittance of interest earned, motor
fuel tax revenues, as follows:
"(b) All departments, boards, bureaus, and other agencies of the state shall report to the
board, on such forms and at such times as the board may prescribe, such information as the
board may reasonably require concerning deposits and withdrawals pursuant to this Code
section and shall enable the board to determine compliance with this Code section. Interest
earned on state funds withdrawn from the state treasury on approved budgets shall be
remitted to the Office of the State Treasurer by each department, board, bureau, or agency
and placed in the general fund. The board may permit the state treasurer to invest in any
one or more of the following: bankers' acceptances; commercial paper; bonds, bills,
certificates of indebtedness, notes, or other obligations of the United States and its
subsidiary corporations and instrumentalities or entities sanctioned or authorized by the
United States government including, but not limited to, obligations or securities issued or
guaranteed by Banks for Cooperatives regulated by the Farm Credit Administration, the
Commodity Credit Corporation, Farm Credit Banks regulated by the Farm Credit
Administration, Federal Assets Financing Trusts, the Federal Financing Bank, Federal
Home Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal National
Mortgage Association, the Financial Assistance Corporation chartered by the Farm Credit
Administration, the Government National Mortgage Association, the Import-Export Bank,
Production Credit Associations regulated by the Farm Credit Administration, the
Resolution Trust Corporation, and the Tennessee Valley Authority; obligations of
corporations organized under the laws of this state or any other state but only if the
corporation has a market capitalization equivalent to $100 million; provided, however, that
such obligation shall be listed as investment grade by a nationally recognized rating
agency; the shares of any mutual fund the investments of which are limited to securities of
the type described in this subsection and distributions from which are treated for federal
income tax purposes in the same manner as the interest on said obligations, provided that
at the time of investment such obligations, or the obligations held by any such unit
investment trust or the obligations held or to be acquired by any such mutual fund, are
limited to obligations which are rated within one of the top two rating categories of any
nationally recognized rating service or any rating service recognized by the commissioner
of banking and finance, and no others, or to securities lending transactions involving
securities of the type described in this subsection; bonds, notes, warrants, and other
securities not in default which are the direct obligations of the government of any foreign
country which the International Monetary Fund lists as an industrialized country and for
which the full faith and credit of such government has been pledged for the payment of
principal and interest, provided that such securities are listed as investment grade by a
nationally recognized rating agency; Bitcoin, as such term is defined in Code Section
50-17-68; or obligations issued, assumed, or guaranteed by the International Bank for
Reconstruction and Development or the International Financial Corporation, provided that
such securities are listed as investment grade by a nationally recognized rating agency;
provided, however, that interest earned on the investment of motor fuel tax revenues shall
be defined as motor fuel tax revenues and shall be appropriated in conformity with and
pursuant to Article III, Section IX, Paragraph VI(b) of the Constitution of Georgia. The
board may also permit the state treasurer to lend any of the securities of the type identified
in this subsection subject to the limitations of subsection (b) of Code Section 50-5A-7 and
this chapter."
SECTION 2.
Said article is further amended by adding a new Code section to read as follows:
"50-17-68.
(a) As used in this Code section, the term:
(1) 'Bitcoin' means the decentralized digital currency hosted on the public blockchain by
the same name.
(2) 'Exchange traded product' means any financial instrument that is approved by the
Securities and Exchange Commission or the Commodity Futures Trading Commission
that is traded on a federally regulated exchange and derives its value from an underlying
pool of assets, such as stocks, bonds, commodities, or indexes.
(3) 'Private key' means a unique element of cryptographic data used for signing
transactions on a blockchain.
(4) 'Qualified custodian' means any federal or state chartered bank, trust company, or
special purpose depository institution or a company regulated by the state which holds
digital assets for an approved exchange traded product.
(5) 'Secure custody solution' means a technological product or blended product and
service which has all of the following characteristics:
(A) The private keys that secure digital assets are exclusively known by and accessible
by the government entity;
(B) The private keys that secure digital assets are exclusively contained within an
encrypted environment and accessible only via end-to-end encrypted channels;
(C) The private keys that secure digital assets are never contained in, accessible by, or
controllable via a smartphone;
(D) Any hardware that contains the private keys that secure digital assets is maintained
in at least two geographically diversified secure data centers;
(E) The secure custody solution enforces a multiparty governance structure for
authorizing transactions, enforces user access controls, and logs all user initiated
actions;
(F) The provider of the secure custody solution has implemented a disaster recovery
protocol that ensures customer access to assets in the event the provider becomes
unavailable; and
(G) The secure custody solution undergoes regular code audits and penetration testing
from audit firms.
(b) The board shall not permit the state treasurer to invest more than 5 percent of any fund
into Bitcoin.
(c) Any digital assets acquired pursuant to this chapter shall be held:
(1) Directly through the use of a secure custody solution;
(2) On behalf of the state by a qualified custodian; or
(3) In the form of an exchange traded product issued by a registered investment
company.
(d) The board may permit the state treasurer to loan digital assets, so long as such loan
does not increase the financial risk to the state."
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
Senate Bill 178 would let Georgia's State Depository Board allow the state treasurer to invest a portion of state funds in Bitcoin, capped at 5 percent of any fund, with rules for secure storage.
### Plain-language summary
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.
### What it does
- 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.
### Who it affects
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.
### Why it matters
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.
### Key provisions
- Section 1 amends O.C.G.A. ยง 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.
## Status
- Status: Introduced (2025-02-13)
- Last action: Senate Read and Referred (2025-02-18)
- Sponsors: Greg Dolezal, Brandon Beach, Clint Dixon, Jason Esteves
- Official page: https://www.legis.ga.gov/legislation/70371
> The history, votes, and amendments (95 characters) are at https://georgiacommons.org/bills/2025-2026/sb178.md?full=1