SB2522 • 2026

Banks and Financial Institutions

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

Labor

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: Yarbro, Towns
Last action: 2026-04-07
Official status: Assigned to General Subcommittee of Senate Commerce and Labor Committee
Effective date: Not listed

Plain English Breakdown

The bill summary does not provide details on how banks will be punished for accidental conversions, leaving this as an unknown.

Digital Currency Protection for Consumers

This bill stops Tennessee banks from turning customers' money into digital currency without getting a clear written agreement from those customers.

What This Bill Does

Defines 'bank' to include state banks, savings and loan associations, and credit unions.
Requires banks to get written permission before changing customer money into digital currencies or similar forms of digital money.
Allows the commissioner of financial institutions to punish banks that break this rule with fines up to $1,000 per day for each violation.
Enables people who are hurt by a bank's actions to sue the bank and get damages plus legal costs.

Who It Names or Affects

Banks in Tennessee
Customers of banks in Tennessee

Terms To Know

Digital Currency: Money that exists only as digital information, like cryptocurrency.
Commissioner of Financial Institutions: The person who oversees and regulates banks in Tennessee.

Limits and Unknowns

Only applies to banks regulated by the state of Tennessee.
Does not cover other financial institutions like investment firms or insurance companies.

Bill History

2026-04-07 Tennessee General Assembly
Assigned to General Subcommittee of Senate Commerce and Labor Committee
2026-04-01 Tennessee General Assembly
Placed on Senate Commerce and Labor Committee calendar for 4/7/2026
2026-03-18 Tennessee General Assembly
No Action Taken
2026-03-11 Tennessee General Assembly
Placed on s/c cal Banking & Consumer Affairs Subcommittee for 3/18/2026
2026-03-11 Tennessee General Assembly
Action Def. in s/c Banking & Consumer Affairs Subcommittee to 3/18/2026
2026-03-10 Tennessee General Assembly
Action deferred in Senate Commerce & Labor Committee to 3/17/2026
2026-03-04 Tennessee General Assembly
Placed on Senate Commerce and Labor Committee calendar for 3/10/2026
2026-03-04 Tennessee General Assembly
Placed on s/c cal Banking & Consumer Affairs Subcommittee for 3/11/2026
2026-03-04 Tennessee General Assembly
Action Def. in s/c Banking and Consumer Affairs Subcommittee to 3/11/2026
2026-03-03 Tennessee General Assembly
Action deferred in Senate Commerce and Labor Committee to 3/10/2026
2026-02-25 Tennessee General Assembly
Placed on s/c cal Banking & Consumer Affairs Subcommittee for 3/4/2026
2026-02-24 Tennessee General Assembly
Placed on Senate Commerce and Labor Committee calendar for 3/3/2026
2026-02-05 Tennessee General Assembly
Passed on Second Consideration, refer to Senate Commerce and Labor Committee
2026-02-04 Tennessee General Assembly
Assigned to s/c Banking & Consumer Affairs Subcommittee
2026-02-04 Tennessee General Assembly
P2C, ref. to Commerce Committee
2026-02-02 Tennessee General Assembly
Introduced, Passed on First Consideration
2026-02-02 Tennessee General Assembly
Filed for introduction
2026-02-02 Tennessee General Assembly
Intro., P1C.
2026-01-23 Tennessee General Assembly
Filed for introduction

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

Read the full stored bill text

HOUSE BILL 2060
By Towns

SENATE BILL 2522
By Yarbro
SB2522
011448
- 1 -

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

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 45, Chapter 2, Part 17, is amended by
adding the following as a new section:
(a) As used in this section:
(1) "Bank" means a state bank, savings and loan association, or credit
union; and
(2) "Commissioner" means the commissioner of financial institutions.
(b) A bank shall not digitize or otherwise convert money held by the bank on
behalf of a consumer into a digital currency, digital medium of exchange, or digital
monetary unit of account, including cryptocurrency, without express, written
authorization from the consumer for whom the money is held.
(c) If, after notice and an opportunity for a hearing, the commissioner finds that a
bank has violated subsection (b), the commissioner may order the bank to do one (1) or
more of the following:
(1) Cease and desist violating subsection (b);
(2) Pay a civil penalty in an amount specified by the commissioner, not to
exceed one thousand dollars ($1,000) for each violation or, in the case of a
continuing violation, one thousand dollars ($1,000) for each day that the violation
continues; or
(3) Pay the costs and expenses for the investigation and prosecution of
the matter, including reasonable attorney fees.

- 2 - 011448

(d) In addition to the penalties and remedies described under subsection (c), an
individual or entity aggrieved by a violation of subsection (b) may bring a civil cause of
action against the bank. If a court finds the bank violated subsection (b), then the court
may issue an injunction and award to the prevailing party:
(1) Actual damages;
(2) Punitive damages; and
(3) Reasonable court costs and attorney fees.
SECTION 2. This act takes effect July 1, 2026, the public welfare requiring it, and
applies to conduct occurring on or after that date.