Crypto Law Profile
Iowa SF 403 would authorize the state treasurer to invest limited public moneys in certain digital assets, stablecoins, and precious metals, with custody and fund-cap requirements.
Iowa Senate File 403, styled in the introduced text as the Inflation Protection Act, is a 2025 Iowa bill concerning the investment of public moneys in digital assets, stablecoins, and precious metals. As of June 11, 2026, the official Iowa Legislature bill history shows SF 403 introduced and referred to the Senate State Government Committee, with a Senate subcommittee assigned on February 24, 2025.
The proposal is not an enacted Iowa statute. This profile summarizes the introduced Senate text and should be updated if the bill is amended, advanced, substituted, or incorporated into companion House File 246.
SF 403 would create a new Iowa Code section 12B.10D titled “Investments — digital assets and precious metals.” The bill defines “digital asset” broadly to include digital-only assets that confer economic, proprietary, or access rights, including virtual currency, cryptocurrency, stablecoins, natively electronic assets, and nonfungible tokens.
The bill would require digital assets acquired by an eligible fund to be held in one of three ways: directly by the treasurer through a “secure-custody solution,” on behalf of the state by a qualified custodian, or as an exchange-traded product. A qualified custodian is defined to include certain federally chartered or state-chartered banks, trust companies, depository institutions, or state-regulated companies that take custody of digital assets.
The “secure-custody solution” definition is detailed. It includes private-key controls, encrypted environments, geographically diverse secure data centers, user-access controls, multiparty governance for transaction authorization, action logging, disaster recovery, code audits, and penetration testing. These provisions appear designed to address operational custody risk without prescribing a single vendor model.
SF 403 would limit the treasurer to holding stablecoins that have received appropriate regulatory approvals from a state or the United States. The introduced text defines a stablecoin as a digital asset issued by a corporation, backed by U.S. currency or high-quality liquid assets, and redeemable on demand at par for an equivalent U.S. dollar value.
The bill would also authorize the treasurer to loan a digital asset to generate additional return for the state if doing so would not increase the state’s financial risk and if done under rules adopted by the treasurer. This is a proposed public-funds authority, not a reader-facing investment recommendation.
For taxes or fees paid to the state in digital assets, the bill draws a distinction based on asset type and size. Qualifying digital assets with market capitalization above $750 billion and stablecoins would be transferred to the general fund, with the original designated fund reimbursed in U.S. currency. Other digital assets paid to the state would be converted into U.S. currency.
SF 403 was introduced by Senator Dave Sires and referred to the Senate State Government Committee on February 20, 2025. The bill history lists a Senate subcommittee of Rozenboom, Bisignano, and Schultz on February 24, 2025. The same official bill-history page identifies HF 246 as a related companion bill; the House companion received a subcommittee passage recommendation on February 26, 2025.
If enacted, SF 403 would affect Iowa public-funds investment authority rather than private crypto activity. Its practical impact would depend on final enacted text, any treasurer rulemaking, eligible asset availability, custody arrangements, and treatment of any companion or substitute legislation.
Defines digital assets broadly and separately defines stablecoins as corporate-issued assets backed by U.S. currency or high-quality liquid assets.
Would authorize the treasurer to invest eligible public moneys in precious metals, stablecoins, and digital assets above a $750 billion market-cap threshold.
Limits investments from each covered fund to no more than 5% of that fund’s public moneys at the time of investment.
Requires digital assets to be held through secure custody, a qualified custodian, or as an exchange-traded product.
Provides handling rules for state taxes or fees paid in digital assets, including transfer to the general fund or conversion to U.S. currency.
SF 403 was introduced and referred to the Senate State Government Committee.
Bill history lists Rozenboom, Bisignano, and Schultz as the Senate subcommittee.
HF 246, the companion bill, received a House subcommittee passage recommendation.
Iowa General Assembly, Iowa Senate State Government Committee, Iowa Treasurer of State
Crypto ETPs, Digital assets, Stablecoins
As of June 11, 2026, Iowa Legislature bill history lists SF 403 in Senate committee with HF 246 as a companion bill. This profile describes introduced text only; update if amended, advanced, or enacted.
