- States are starting to vote down Bitcoin reserve bills.
- Lawmakers have expressed concerns over risks and speculation.
- Utah and Arizona are pushing forward with bills to invest public funds in Bitcoin.
Three bills aimed to introduce state-run Bitcoin reserves have failed since Donald Trump took office, despite the president’s promises to relax crypto laws.
State bills and Montana, North Dakota, and Wyoming — home-state of Senator Cynthia Lummis, a vocal advocate for a federal strategic Bitcoin reserve — were downvoted in the past month.
The bills’ detractors warned that setting up crypto reserves risk jeopardising taxpayers’ money.
“This just smacks of speculation,” Montana Representative Steven Kelly warned when he voted against fellow Republican Representative Curtis Schoemer’s bill.
Over 30 states are exploring legislation involving Bitcoin reserves and digital asset investments, according to Bitcoin Laws.
Trump effect
Both the federal and state-level proposals have grown louder since Trump’s election win, which seem to have made being pro-crypto a key ingredient to a vote-grabbing recipe.
“Donald Trump was sworn in at noon on January 20 and at 12:01 everyone wanted a Bitcoin strategic reserve,” said Anthony Scaramucci, the crypto investor and hedge fund manager, at a London conference in February.
Trump has promised to make the US the crypto capital of the planet and has appointed a crypto czar, nominated pro-industry candidates for key positions, and fired off sweeping executive orders to make that happen.
Yet, so far none of the state-level bills seem to have had much success.
In Montana, House Bill 429 — a measure to create a state special revenue account for investing in precious metals and digital assets — lost in a vote with 41 representatives voting in favour and 59 against.
In North Dakota, HB 1184 — designed to channel state funds into a Bitcoin reserve — was narrowly defeated in a 57 to 32 vote.
In Wyoming, seven out of nine representatives rejected the HB 0201 bill to authorise the state treasurer to invest public funds in Bitcoin.
States pushing ahead
Several states are still pushing ahead.
In Utah, a bill on the brink of passage would allow up to 5% of several major state funds to be invested in qualifying digital assets.
With its House Economic Development Committee boasting a near-perfect track record, Utah could be the first to pass a Bitcoin reserve bill, according to Satoshi Action Fund co-founder and CEO Dennis Porter.
In Arizona, lawmakers are pushing forward with the Strategic Bitcoin Reserve Act, a measure that aims to use Bitcoin as a savings tool for the state.
The bill, which recently passed the Senate Finance Committee with a five-to-two vote, is now headed to the Senate Rules Committee for further debate.
If approved, it would enable up to 10% of state and public funds — including pension funds — to be allocated to Bitcoin.
Crypto market movers
- Bitcoin has kept even in the past 24 hours and is trading at $95,850.
- Ethereum is down 4.6% over the same period to $2,680.
What we’re reading
- Stablecoins poised to be ‘new payment method’ if they clear these hurdles, says Fed researcher ― DL News
- Why the SEC’s Dismissal of the Coinbase Case Is a Total Win for Crypto ― Unchained
- When will markets move again? ― Milk Road
- North Korea is likely behind the $1.5bn Bybit hack, researchers say ― DL News
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
