Several states in the U.S. are already considering the idea of a strategic Bitcoin reserve as proponents await a push from Donald Trump on the federal level.
On the campaign trail for the November 2024 elections, now President-elect Donald Trump made several big promises to the crypto industry. Still, none has been as talked about following the election as his intention to launch a strategic U.S. Bitcoin reserve.
However, while pundits continue to debate the feasibility of such a move at the Federal level and its possible market impacts, some states may be looking to get in on the action.
U.S. States Consider the Orange Pill
Following Donald Trump’s election victory, at least three U.S. states are considering building their own Bitcoin stockpile employing unique frameworks, as recently highlighted in a CNBC Crypto World report on Tuesday, December 24. Speaking with CNBC, Centrifuge General Counsel Eli Cohen asserted that the development was significantly positive for the crypto markets.
Pennsylvania
On November 12, barely a week after Trump’s announcement as the next U.S. president, Pennsylvania State Representative Mike Cabell proposed a bill to allow the state treasurer to invest state funds in Bitcoin.
House Bill 2664, or the Strategic Bitcoin Reserve Act, seeks to allow the treasurer to invest up to 10% of the State General Fund, the Rainy Day Fund, and the State Investment Fund in Bitcoin.
Cabell argues that implementing the bill would help protect state assets against inflation. He asserted that the state’s purchasing power had reduced by a staggering 20% in the past four years alone while Bitcoin continues to gain strength against the dollar.
So far, Pennsylvania’s Strategic Bitcoin Reserve Act has received only one co-sponsor, Representative Aaron Kaufer.
Texas
On December 12, Texas State Representative Giovanni Capriglione proposed House Bill 1598, or the Texas Strategic Bitcoin Reserve Act, to allow the state to establish a Bitcoin reserve within its treasury.
Unlike Pennsylvania’s proposed bill allowing the treasurer to purchase Bitcoin with established state funds, the proposed Texas bill will establish the reserve by enabling residents to pay charges and taxes with Bitcoin. The stockpile will also be open to voluntary donations.
The Texas bill also details the establishment of cold storage and a holding period, noting that the state must not sell the reserve for at least five years.
Like Pennsylvania’s Cabell, Capriglione also argues that Bitcoin could act as an inflationary hedge preserving value for Texans.
On Tuesday, Centrifuge’s Eli Cohen told CNBC that Texas’ bill may face significant infrastructure hurdles and problems getting the crypto community to submit their wallet for taxes.
Ohio
Ohio is the most recent to join the Bitcoin rush. On December 17, state Representative Derek Merrin submitted a proposal to allow the state to establish a Bitcoin stockpile.
House Bill 703, or Ohio’s Bitcoin Reserve Act, seeks to give the state treasurer the flexibility to invest in Bitcoin if they desire and build a reserve from seized assets.
Merrin hopes the bill will pave the way for quick legislation in 2025.
The recent state bills, like the proposed national effort, are all in their early stages, and it remains unclear if they can garner the needed support to become law. But till then, the ensuing speculation continues to drive excitement about Bitcoin and crypto.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
