A measure to bar public retirement funds from investing in cryptocurrencies is moving ahead in the Tennessee Senate.

As previously reported, twin bills filed in January would block the trustees of public, post-retirement benefit funds from making such investments. On March 6, the Tennessee Senate Ways and Means Committee cleared the measure by a 10-0 vote, passing it along to the full chamber for further consideration.

The bill, sponsored by Senator Bill Ketron (R-13), is identical to one being considered in the state's House of Representatives. Public records indicate that the House's Ways and Means Committee will take up the measure next week.

House Bill 2093

, sponsored by Representative Michael Curcio (R-69), also amends the Tennessee Code, specifically amending Title 8, Chapter 27, Part 8 to include "notwithstanding any law to the contrary, the trustees shall not invest in any cryptocurrency" as part of its statutes, as previously reported.

Title 8, Chapter 27, Part 8

specifically deals with investment schemes for public employees. Trustees of the fund are charged with managing their finances and operation. It enables trustees to not only invest funds in legal investments, it also provides powers to work with different entities as well as to contract out the services required to maximize an investment.

An amendment to both bills would allow educators participating in post-employment benefits investment trusts through local agencies to continue doing so. While it is not explicitly stated, it seems to indicate that these trusts can potentially be invested in cryptocurrencies without impacting educators.

If passed, this would mark the first time public trustees would be banned from investing in cryptocurrencies for retirement funds.

Tennessee flag image via Shutterstock