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Committee approves allowing state funds to invest in Bitcoin, capping allocations at 10%
Summary
House Bill 1203 would permit state-managed funds to invest in Bitcoin and other large-cap digital assets, with a cap (10%) on allocation; the committee passed the bill 6-2 after sponsors argued major fund managers now offer crypto ETFs and recommended small allocations.
The House Committee on Banking, Financial Services and Pensions voted 6-2 to approve House Bill 1203, a measure that would allow state-managed funds to invest in Bitcoin and similarly large digital assets, with a limit of 10% of holdings.
Representative Maynard, the sponsor, said the bill "does not require an investment. It merely allows it at the discretion of our fund managers and make sure that they cannot allocate more than 10%." He told the committee that some asset managers have recommended modest allocations to Bitcoin and that the bill limits investments to widely recognized digital assets by setting a market-capitalization threshold for qualifying assets.
Members asked about safeguards if fund managers allocated beyond preferred levels and whether the legislature could intervene; the sponsor said investment boards are generally appointed and that removal mechanisms for managers exist but the legislature would not be the day-to-day decisionmaker.
After discussion the committee recorded a 6-2 vote to pass the bill and refer it for further consideration. The transcript does not include a fiscal estimate in the hearing record provided.
