Allows the state treasurer to acquire, hold and have the option to invest uncommitted funds in digital assets.
Summary
H6007 creates the “Rhode Island Digital Asset Retention Act” and authorizes the state treasurer to invest certain unexpended, unencumbered, or uncommitted state funds in Bitcoin or other digital assets. The bill applies to money in the general fund, the budget stabilization reserve fund, and other investment funds managed directly by the treasurer, and it caps such investments at 10% of the total amount deposited in a fund at the time of investment during any calendar year.
The bill also permits state retirement systems to invest in exchange-traded products tied to digital assets. It defines key terms such as Bitcoin, digital asset, qualified custodian, private key, secure custody solution, and state retirement fund, and it requires digital assets to be held through secure custody arrangements or through an approved exchange-traded product. The treasurer would also be allowed to loan digital assets if doing so would not increase financial risk to the state, subject to rules and regulations adopted by the treasurer. The act would take effect on September 1, 2025.
Impact
The bill would amend Title 35 of the Rhode Island General Laws by adding a new chapter governing digital asset retention and investment authority for the state treasurer and state retirement systems. It would expand permissible public-fund investment options to include Bitcoin and other digital assets, while imposing limits and custody requirements intended to manage risk. It would also affect state retirement investment policy by allowing systems to invest in digital-asset exchange-traded products, potentially changing how public funds are diversified and managed.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the overall sentiment appears supportive of exploring digital assets as a hedge against inflation and a tool for improving returns. The findings section frames the proposal as a financial resilience measure, emphasizing inflation protection, economic security, and flexibility in investment strategy. There is no recorded public debate in the provided materials, so no formal opposition or support from legislators can be identified from the transcript record.
Contention
The main points of contention likely concern financial risk, volatility, and the appropriateness of exposing public funds and retirement assets to cryptocurrency markets. The bill tries to address these concerns by limiting annual exposure to 10%, requiring secure custody solutions or regulated exchange-traded products, and allowing loans only if they do not increase risk. Potential critics would likely focus on Bitcoin’s price volatility, custody and cybersecurity risks, and whether digital assets are suitable for state reserves or pension funds, while supporters would emphasize inflation hedging and diversification.