The U.S. state of Georgia has introduced a second Bitcoin reserve bill, 10 days after proposing its first legislation, allowing the state treasurer to invest in the largest crypto.
The new Bitcoin Reserve Bill SB 228, allows the state to invest in Bitcoin without any investment restrictions. The bill amends Section 3 of Chapter 17 of Title 50 of the state code relating to state depositories.
Georgia’s second Bitcoin stockpile bill has emerged as a partisan competitor to the previous bill. Under SB 228, the State Depository Committee will be authorized to allow the State Treasury Department to invest in Bitcoin.
To compare, the SB 178 bill introduced 10 days ago has Republican sponsors, while SB 228 is backed by Democrats.
Further, the bill requires the State Treasury Department “to develop policies and procedures for acceptance, storage, and transacting of Bitcoin.” Additionally, it stipulates that BTC held by the state government shall be in accordance with policies and procedures.
The new legislation was jointly proposed by four Senators including, Sen. Esteves and awaits review at the Georgia General Assembly.
Who Will Monitor Strategic Bitcoin Reserves?
According to Bitcoin Reserve Monitor, 20 out of 50 states in the US are stepping up with legislation to hold Bitcoin in strategic reserves. So far, none of the states have passed a Bitcoin reserve legislation.
According to Adam Levine, CEO of Fireblocks Trust Company and SVP, Corporate Development & Partnerships, Bitcoin needs “specialised custody solutions” unlike traditional reserves like gold.
“The top priority must be leveraging the safest solution to preserve their Bitcoin reserves,” he told Cryptonews via mail. He added that this would help mitigate risks like theft, mismanagement, and regulatory uncertainty.
“Most governments today lack the depth of experience needed to operate digital assets. Therefore, the most prudent approach is for these governments to procure the services of licensed custodians who have the appropriate combination of cybersecurity resilience and digital asset operational experience.”
Appropriate custodians will assure governments to preserve their constituents’ financial backing in “the most secure manner,” Levine noted.
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