Relating to the investment of public moneys in digital assets and precious metals

Under current law, the treasurer of state (treasurer) may only make ceratin investments with public moneys. This bill allows the treasurer to invest no more than percent of the moneys from the general fund of the state, cash reserve fund, and Iowa economic emergency fund in precious metals, digital assets with a market capitalization of over $750 billion, and stablecoins. The bill requires that a digital asset be held by the treasurer through the use of a secure-custody solution, by a qualified custodian, or as an exchange-traded product. The bill requires that precious metals be held in physical form by the state or in conjunction with another state, by a qualified custodian, or as an exchange-traded product. The treasurer may only hold stablecoins that have received regulatory approval from a state or the United States. The bill permits the treasurer to loan a digital asset to generate revenue for the state if doing so does not increase the financial risk to the state. The bill provides that if a tax or fee is paid to the state in digital assets with a market capitalization of over $750 billion or stablecoin, the asset must be transferred to the general fund and the original fund must be reimbursed with United States currency. If a tax or fee is paid in digital assets with a lesser market capitalization, the asset must be converted into United States currency.