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Committee approves amendment letting treasurer consider limited digital-asset exposure, sets high market-cap threshold
Summary
The Commerce committee voted to advance a bill that would add certain high-quality digital assets and precious metals to the state treasurer's list of approved investments, subject to caps and a market-cap threshold. Supporters described it as an optional tool; critics questioned volatility and oversight.
The House Commerce and Consumer Affairs Committee voted to advance an amended version of House Bill 302 that would allow the state treasurer to consider adding specified high-quality digital assets and precious metals to the treasury's approved investment list.
Under the amendment adopted in committee, the authority is optional for the treasurer and would be limited to a small percentage of the portfolio. The amendment lowered a previously discussed cap to a maximum of 5 percent of eligible funds and added a strict qualification for what counts as a "qualified digital asset": an annual market capitalization of at least $500,000,000,000 (a half-trillion) in the prior year. Sponsors said the likely vehicle for precious metals or digital assets would be an exchange-traded product (ETF) rather than direct holdings.
Representative Ammon, who spoke to the amendment, said the treasurer "expressed interest in having the option, but is still determining when she would use it." He described the amendment as a narrowing of an earlier, broader proposal, removing more experimental elements (for example, "stable token" staking provisions) while preserving an option for diversification.
Representative Gibbs asked whether such digital assets would be "sufficiently reliable to trust with the state's money." Supporters emphasized the discretion of the treasurer and the market-cap threshold as safeguards. Committee members also noted market- and credit-rating constraints; one committee exchange referenced Moody's as a market check on decisions that could affect the state's bond rating.
Committee action: Representative Ammon moved the committee's "ought to pass as amended" recommendation; the amendment and motion were adopted and the bill was placed on the committee consent calendar. The transcript records the final committee vote on the amendment as 16 in favor, 1 opposed.
Why this matters: The change would give the treasurer limited statutory authority to consider nontraditional assets within tightly defined parameters. Supporters said it adds optional flexibility for long-term returns; critics warned of price volatility and potential credit-market consequences if results were unfavorable.
Next steps: Because the committee placed the measure on the consent calendar the bill is expected to be reported out of committee for floor consideration, subject to any later procedural challenges or changes.
