SB 228: State Depositories; State Depository Board to 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 federal bonds, commercial paper, and top-rated corporate obligations. This bill adds bitcoin, a decentralized digital currency, to that approved list under O.C.G.A. § 50-17-63. The bill also creates a new Code section, 50-17-68, that defines bitcoin and 'cold storage' (keeping the private keys needed to access bitcoin in a secure, offline location) and requires the state treasurer, working with the board, to write policies for how the state accepts, stores, and transacts in any bitcoin it owns. Those policies can allow the state to use approved U.S.-based custodians to hold the bitcoin securely. Any bitcoin the state receives or invests in must be handled under these new rules. The bill repeals conflicting laws and does not state a delayed effective date.

• Adds bitcoin to the list of investments the State Depository Board may authorize the state treasurer to make with state funds, alongside bonds and commercial paper.
• Creates a new Code section (50-17-68) defining 'bitcoin' as a decentralized digital asset run by a peer-to-peer network with no central authority or bank.
• Defines 'cold storage' as keeping bitcoin's access keys in a secure physical location isolated from network connections.
• Requires the state treasurer, in consultation with the board, to write policies for accepting, storing, and transacting in bitcoin the state owns.
• Allows those policies to rely on qualified, U.S.-based custodians approved by the board to hold the state's bitcoin.
• Requires that all bitcoin the state receives or owns, including bitcoin bought as an investment, be held according to these new policies.

The Office of the State Treasurer and the State Depository Board, which gain new investment authority and new rulemaking duties; and any U.S.-based custodial firms the state might approve to store bitcoin on its behalf. Indirectly, it affects how Georgia's public funds are managed.

If enacted, the state treasurer could put public money into bitcoin, an asset known for large price swings, rather than only into traditional, more stable investments. The new custody and storage rules aim to protect the state's holdings from theft or loss, changing how a portion of state funds could be managed.

• Section 1 amends O.C.G.A. § 50-17-63 to add bitcoin, as defined in the new Code Section 50-17-68, to the list of assets the board may let the state treasurer invest in.
• Section 2 creates new Code Section 50-17-68, defining 'bitcoin' and 'cold storage' and requiring the treasurer to develop bitcoin acceptance, storage, and transaction policies in consultation with the board.
• Section 2 allows the state to use approved United States based custodial entities to hold bitcoin owned by the state.
• Section 2 requires that all bitcoin the state receives or owns, including bitcoin bought as an investment under Section 50-17-63, be held under the 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
• public funds management
• state treasurer