On February 5, 2025, the Tennessee State Legislature introduced Senate Bill 985, a legislative proposal aimed at regulating the storage, transfer, and delivery of precious metals in both retail and wholesale transactions. The bill seeks to establish a framework for bullion depositories, allowing them to operate privately or publicly while serving as custodians for precious metals deposited by the state, its subdivisions, or private entities.

Key provisions of Senate Bill 985 include the authorization for depositories to engage in various transactions and investments, as well as the requirement for these institutions to submit annual reports detailing their activities. These reports will be audited by the comptroller of the treasury, with the costs borne by the depositories themselves. The commissioner of financial institutions is tasked with aggregating this information and reporting it to state leadership, including the governor and legislative bodies, by January 31 each year.

The introduction of this bill has sparked notable discussions among lawmakers, particularly regarding the implications for financial transparency and regulatory oversight in the precious metals market. Proponents argue that the bill will enhance accountability and protect consumers, while critics express concerns about potential overregulation that could stifle business operations in the sector.

The economic implications of Senate Bill 985 could be significant, as it aims to create a more structured environment for precious metals transactions, potentially attracting more businesses to Tennessee. However, the bill's future remains uncertain as it faces scrutiny and debate in the legislature.

As discussions continue, stakeholders are closely monitoring the bill's progress, with potential amendments and revisions likely to emerge as lawmakers weigh the balance between regulation and market freedom. The outcome of Senate Bill 985 could set a precedent for how precious metals are managed and regulated in Tennessee, influencing both local businesses and consumers in the years to come.