Tennessee Senate Bill SB2522

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 45, relative to digital currencies.

Summary

SB2522 would add a new section to Tennessee banking law prohibiting a bank from converting a consumer’s money into a digital currency, digital medium of exchange, or digital monetary unit of account, including cryptocurrency, unless the consumer gives express written authorization. The bill defines “bank” to include state banks, savings and loan associations, and credit unions, and assigns enforcement authority to the commissioner of financial institutions. If the commissioner determines, after notice and a hearing, that a bank violated the prohibition, the commissioner may order the bank to stop the conduct, impose civil penalties of up to $1,000 per violation or per day for a continuing violation, and require payment of investigation and prosecution costs, including attorney fees. The bill also creates a private right of action for any aggrieved individual or entity, allowing a court to award injunctive relief, actual damages, punitive damages, and attorney fees.

Impact

The bill would amend Title 45 of the Tennessee Code by regulating how financial institutions handle consumer funds in relation to digital currencies and cryptocurrency. It would create new compliance obligations for banks, credit unions, and savings and loan associations, while giving the commissioner of financial institutions administrative enforcement authority and allowing private lawsuits for violations. The act would apply prospectively to conduct on or after July 1, 2026.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or vote sentiment in the available record. Based on the text alone, the bill appears to reflect a consumer-protection approach toward digital currency conversion by financial institutions, emphasizing consent and legal remedies rather than promoting digital asset adoption.

Contention

The main point of contention suggested by the bill’s structure is whether banks should be allowed to convert customer-held funds into digital currency products without explicit written consent. Supporters would likely frame the measure as protecting consumer autonomy and preventing unauthorized exposure to cryptocurrency or other digital monetary instruments, while opponents may view it as an unnecessary restriction on financial innovation or operational flexibility for banks. The private right of action and availability of punitive damages may also be a point of concern for financial institutions because it increases litigation risk and potential liability.