Amends TCA Title 5; Title 6; Title 7; Title 13; Title 45; Title 47; Title 48 and Title 67.

This bill authorizes an individual to engage in home digital asset mining as long as the individual complies with all local noise ordinances. As used in this bill, "digital asset mining" means using electricity to power a computer for the purpose of securing a blockchain network and generating a controllable electronic record. This bill also authorizes an individual to operate a node for the purpose of connecting to a blockchain protocol or a protocol built on top of a blockchain protocol and transferring digital assets on a blockchain protocol, or participating in staking on a blockchain protocol. As used in this bill, "node" means a computational device that communicates with other devices, participates on a blockchain to maintain consensus and integrity of that blockchain, creates and validates transaction blocks, or contains and updates a copy of a blockchain This bill provides that an individual engaged in home digital asset mining, a digital asset mining business, or operating a node or a series of nodes on a blockchain protocol is not required to obtain a license under the Money Transmission Modernization Act. As used in this bill, "digital asset mining business" means a group of computers working at a single site that consume more than one megawatt of energy on an average annual basis for the purpose of securing a blockchain protocol and generating controllable electronic records This bill authorizes a digital asset mining business to engage in digital asset mining in any area that is zoned for industrial use. PROHIBITIONS This bill prohibits a political subdivision from doing the following: (1) Setting a specific limit on sound decibels generated from home digital asset mining other than the limits set by the political subdivision for sound pollution generally; (2) Setting a specific limit on sound decibels generated from a digital asset mining business other than limits set for sound pollution that apply to industrial-zoned areas generally; (3) Imposing any requirement on a digital asset mining business that is not also a requirement for data centers within the area of jurisdiction for such political subdivision; or (4) Making a zoning change to an area with a digital asset mining business without conducting all required notice and hearing procedures. A digital asset mining business may appeal such zoning change to the proper court of jurisdiction. A judge of such court must reject such zoning change if the change was made to discriminate against a digital asset mining business. This bill prohibits this state, or a political subdivision of this state, from doing the following: (1) Prohibiting, restricting, or otherwise impairing the ability of an individual to use (i) a controllable electronic record to purchase legal goods or services; or (ii) a self-hosted wallet or third-party or hardware storage wallet for self-custody of controllable electronic records; or (2) Imposing any additional tax, withholding, assessment, or charge on a controllable electronic record used as a method of payment based solely on the use of the controllable electronic record as the method of payment. However, this does not prohibit this state or a political subdivision of this state from imposing or collecting a tax, withholding, assessment, or charge that would otherwise be collected if the transaction had taken place using legal tender. As used in this bill, "hardware storage wallet" means a physical device that is not continuously connected to the internet and allows an individual to secure and transfer controllable electronic records. Additionally, as used in this bill, "self-hosted wallet" means a digital interface used to secure and transfer controllable electronic records and under which the owner of the controllable electronic record retains independent control over the controllable electronic record that is secured by such digital interface. Finally, this bill prohibits a business offering to provide staking as a service for individuals or other businesses from being deemed to be offering a security under the Tennessee Securities Act of 1980. As used in the bill, "staking" means the act of committing controllable electronic records for a period of time to validate and secure a specific blockchain network; and "staking as a service" means the provision of technical staking services, including the operation of nodes and the associated infrastructure necessary to facilitate participation in blockchain networks' consensus mechanisms.