US States Move Forward with Publicly Funded Bitcoin Reserves Amid Federal Uncertainty

More than 30 U.S. states have considered the idea of creating publicly funded Bitcoin reserves, with at least two jurisdictions nearing the passage of related legislation. Despite this, federal laws to create a Bitcoin reserve have yet to be agreed upon by policymakers in Washington.

State-Level Proposals Gain Traction

Utah and Arizona have pushed forward proposals to purchase Bitcoin using public funds, although not all lawmakers support the idea of state-run Bitcoin reserves. On the other hand, Montana, North Dakota, and Wyoming have rejected similar bills, citing concerns over crypto speculation and digital asset risks.

Wyoming Republican Senator Cynthia Lummis, chair of the Senate Banking Subcommittee on Digital Assets, highlighted the challenges in implementing federal laws to create a Bitcoin reserve. Lummis introduced a bill proposing that the Federal Reserve swap a portion of its gold reserves for Bitcoin. If enacted, the law would require the U.S. government to acquire up to 5% of Bitcoin’s total supply over five years.

White House Interest in National Bitcoin Reserve

At the White House, AI and crypto czar David Sacks reaffirmed President Trump’s interest in establishing a national Bitcoin reserve in a statement earlier this year. However, progress is still in its early stages, and the concept is under evaluation.

“We don’t have enough people comfortable enough in the House and Senate to do this yet,”

Lummis remarked, echoing similar sentiments about the need for more support in Congress.

Stablecoins: A Potential Starting Point for Digital Asset Frameworks

Lawmakers in both the Senate and the House have presented bills standardizing stablecoin rules. Stablecoins are likely to be the starting point for digital asset frameworks, with Senators and industry experts agreeing that regulations should be prioritized.

The GENIUS Act, bipartisan legislation that would establish a clear regulatory framework for stablecoins, was highlighted by Lummis as an important step forward. The act aims to provide clarity and stability in the digital asset market.

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