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Committee advances bill enabling a state‑authorized precious‑metals depository and electronic gold/silver transactions
Summary
Senators advanced a permissive bill that would authorize Arkansas to establish (at the state's option) a precious‑metals depository and allow precious‑metals‑backed electronic transactions; the treasurer's office and senators raised questions about details and regulatory guardrails.
Representative Mindy McAlinnan told the Senate Insurance and Commerce Committee that House Bill 1918 would authorize, but not require, the state to establish a precious‑metals depository and a mechanism for gold‑ or silver‑backed electronic transactions.
"The bill authorizes the option for a state run depository in the future. It does not mandate 1," McAlinnan said. She described how a depository model would let individuals deposit physical gold or silver, receive an account balance, and use an electronic payment instrument tied to the metal’s value.
Michael Harry of the State Treasurer's office, who appeared as a witness, said rules would be promulgated by the chief financial officer and that the bill would rely on safeguards where the bullion is housed in other states. Committee members pressed for more detail because the bill establishes an enabling framework rather than an operational plan. Questions focused on consumer protections, where bullion would be held, applicable federal rules and how the program would interact with existing financial rails (Visa/Mastercard) and depository practices.
Supporters cited other states' activity on state depositories, including Texas, and said the bill simply permits Arkansans the option to use asset‑backed transactions and positions the state for financial innovation. Senators voted to advance the bill; McAlinnan said the treasurer’s office would develop rules if the program moves forward.
