- States are beginning to reject Bitcoin reserve legislation.
- Legislators have voiced apprehensions regarding risks and speculation.
- Utah and Arizona are advancing bills to allocate public funds for Bitcoin investments.
Since Donald Trump took office, three proposed state-run Bitcoin reserves have been voted down, despite the president’s earlier commitments to ease crypto regulations.
Recent voting outcomes have seen state bills from Montana, North Dakota, and Wyoming — the home state of Senator Cynthia Lummis, an outspoken supporter of a federal strategic Bitcoin reserve — rejected in the last month.
Opponents of these bills cautioned that establishing crypto reserves could threaten taxpayer funds.
“This just smacks of speculation,” stated Montana Representative Steven Kelly while opposing the bill put forth by fellow Republican Representative Curtis Schoemer.
Currently, over 30 states are considering legislation regarding Bitcoin reserves and investment in digital assets, as reported by Bitcoin Laws.
Impact of Trump
Both federal and state-level proposals have gained momentum since Trump’s election victory, which appears to have made pro-crypto sentiment a vital component for garnering votes.
“Donald Trump was sworn in at noon on January 20, and by 12:01, everyone was advocating for a Bitcoin strategic reserve,” remarked Anthony Scaramucci, crypto investor and hedge fund manager, during a conference in London in February.
However, none of the state-level bills have achieved significant success thus far.
In Montana, House Bill 429, which aimed to establish a special revenue account for investments in precious metals and digital assets, was defeated with a vote of 41 in favor and 59 against.
In North Dakota, HB 1184, intended to direct state funds into a Bitcoin reserve, was narrowly rejected with a vote count of 57 to 32.
Meanwhile, in Wyoming, seven out of nine representatives dismissed the HB 0201 bill, which sought to authorize the state treasurer to invest public funds in Bitcoin.
States Moving Forward
Despite setbacks, several states continue to push forward.
In Utah, a nearly passed bill would permit up to 5% of various major state funds to be invested in qualifying digital assets.
With a stellar track record in its House Economic Development Committee, Utah may become the first state to pass a Bitcoin reserve bill, according to Satoshi Action Fund co-founder and CEO Dennis Porter.
In Arizona, lawmakers are advancing the Strategic Bitcoin Reserve Act, which aims to utilize Bitcoin as a savings mechanism for the state.
This bill recently passed the Senate Finance Committee with a vote of five to two and is now headed to the Senate Rules Committee for additional discussions.
If approved, it would allow up to 10% of state and public funds—particularly pension funds—to be directed towards Bitcoin investments.
Market Update
- Bitcoin has remained stable over the past 24 hours, currently trading at $95,850.
- Ethereum has decreased by 4.6% during the same period, now priced at $2,680.
Further Reading
Kyle Baird is DL News’ Weekend Editor. Have a tip? Reach out at [email protected].
