New Mexico Proposes 5% Bitcoin Reserve

New Mexico has joined the growing list of U.S. states exploring the possibility of establishing a Bitcoin reserve. The state's Senate Bill 275, introduced by Senator Anthony Thornton, proposes allocating 5% of public funds to purchase Bitcoin (BTC). The bill is currently under review by the Senate Taxation, Business, and Transportation Committee (STBTC).

New Mexico is not alone in its exploration of a Bitcoin reserve. Other states, such as Wyoming, led by Senator Cynthia Lummis, have also made progress in their plans to invest in BTC. According to Bitcoin Laws, a tracker for BTC reserve legislation, 15 states have seen some progress in their respective bills. However, most of these bills are still in the early stages, with none having been enacted yet.

While some states, like North Dakota and Wyoming, have seen their bills fail to proceed, others, such as Arizona, have made significant progress. On the national level, President Trump's crypto czar, David Sacks, confirmed that the president has instructed him and the relevant working group to evaluate the idea of a BTC reserve. The working group has been given 180 days to submit a framework for a 'national digital stockpile.'

At present, Polymarket odds for the national BTC reserve in 2025 are below 50%, suggesting that the market has not fully priced in the possibility of a positive outcome. As the dialogue around digital assets continues to evolve, it is essential for investors to stay informed about the implications of such developments on market stability and monetary policy.