The U.S. States` Bitcoin Reserve Race Heats Up

The Deputy Minority Leader in the Illinois House of Representatives, John Cabello, has introduced a bill to establish a Strategic Bitcoin Reserve (SBR). This initiative, along with several similar proposals, has caught the attention of Dennis Porter, CEO of the Satoshi Action Fund. His organization advocates for the first cryptocurrency within political and business circles across the country. In December 2024, Porter outlined a mechanism through which President Donald Trump could finance the creation of a federal SBR before Congress enacts any legislative changes. He noted that if federal authorities do not expedite the establishment of the fund, they would initiate a ”wave of SBRs” at the state level. In January, as part of fulfilling campaign promises, Trump announced the formation of a task force on digital assets led by special advisor on AI and cryptocurrencies David Sachs. One of the group`s objectives is to assess the feasibility of implementing an SBR. In a recent interview, the official confirmed that they are ”studying” the issue. The largest publicly traded miner by market capitalization, MARA Holdings, has joined efforts to lobby for the creation of Bitcoin reserves at both federal and all 50 state levels. Illinois John Cabello`s proposal calls for creating a fund managed by the state treasurer. Deposits in digital gold will be held for no less than five years, during which any Bitcoins in the reserves cannot be transferred, sold, or converted into other assets. The structure will be able to accept voluntary donations in the first cryptocurrency. Cabello proposed regular audits every two years. As a security measure, he deems it necessary to utilize cold storage for the coins. Ohio House Majority Leader Steve Demetriou has introduced a new bill to create an SBR, co-authored by six other state congressmen. A similar initiative was first proposed in December by Republican Derek Merrin. Key features of Demetriou`s proposal include: The state may allocate up to 10% of its stabilization fund for Bitcoin investments. The structure employs reliable custodial solutions with self-custody. Only assets with a market capitalization of at least $750 million can be included in the reserve. The bill uses the neutral term ”digital asset” to reduce political friction. ”We fully support and endorse this act and will work closely with its authors and supporters to make it a reality,” stated Porter. Arizona, Utah, Texas, and Others In Arizona, the bill to establish an SBR was the first among states to pass through a relevant committee. The document will soon be put to a Senate vote. Republicans Wendy Rogers and Jeff Weninger are co-sponsors of this proposal. The Utah Senate was second in this regard — its SBR document has also exited committee. In South Dakota, a bill regarding a Bitcoin fund has just begun its journey in Congress—registered by Representative Logan Manhart. In Texas, the lieutenant governor declared the creation of an SBR as a ”priority,” noted Porter. The corresponding act was submitted to the House of Representatives back in December. ”We are moving very quickly,” summarized Porter regarding recent developments on this topic. At the end of January, Arizona`s Congress introduced a bill allowing local government and pension funds to invest in Bitcoin. A similar initiative was proposed in Indiana. The organization The Bitcoin Conference reported that there are currently 10 states where legislative acts concerning the first cryptocurrency have already been introduced. Analysts from Fidelity Digital Assets believe that national adoption of Bitcoin in 2025 will serve as a powerful driver for this digital asset.

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