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Bill

HB 2060

Banks and Financial Institutions - As introduced, prohibits a bank from digitizing or otherwise converting 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. - Amends TCA Title 45.

114th Regular Session (2025-2026) Introduced by Joe Towns

Tennessee bill requiring banks to obtain explicit written consumer consent before converting deposits into digital currencies or cryptocurrencies.

Action Def. in s/c Banking & Consumer Affairs Subcommittee to 3/18/2026
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Bill Summary · HB 2060

Legislative bill overview

HB 2060 would prohibit Tennessee banks from converting consumer deposits into digital currencies, cryptocurrencies, or digital monetary units without explicit written consent from the account holder. The bill amends Tennessee Code Annotated Title 45 (Banking and Financial Institutions) to establish this consumer protection requirement.

Why is this important

As central bank digital currencies (CBDCs) and financial digitization accelerate, this bill addresses consumer concerns about unilateral conversion of traditional deposits into alternative digital forms without permission. It establishes a clear legal requirement for informed consent before any such conversion, protecting depositors' autonomy over their funds and the form in which they hold assets.

Potential points of contention

  • Technological feasibility concerns: Banks may argue the bill is unnecessarily restrictive or creates operational complications if digital currency systems become standard banking infrastructure
  • Definition ambiguity: Terms like "digital monetary unit of account" and "digital medium of exchange" could be interpreted broadly, potentially affecting legitimate fintech services, stablecoins, or digital payment systems banks currently offer
  • Federal vs. state authority: Questions about whether Tennessee can impose restrictions on banks' digital asset practices when federal banking regulation and potential CBDC implementation involve federal oversight

Compiled from official sources — confirm details with the bill’s official record.

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