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States Race to Bitcoin Reserve as Trump's Plan Stalls

Coin WorldThursday, Jan 30, 2025 6:23 am ET

1min read

The Trump administration is highly unlikely to create a Bitcoin strategic reserve in the first three months, according to an analysis. This assessment comes as several U.S. states, including Illinois and Texas, are exploring the possibility of establishing their own Bitcoin reserves.

Illinois State Representative John M. Cabello introduced House Bill 1844 (HB1844), known as the Strategic Bitcoin Reserve Act. The bill recognizes Bitcoin as a decentralized and limited asset that could serve as a hedge against inflation and economic uncertainty. The proposed reserve would be managed by the State Treasurer and allow Bitcoin donations from residents and government entities. Bitcoin added to the fund would be held for at least five years before being sold, transferred, or converted. The bill also includes rules for transparency, requiring regular reports on fund management.

Meanwhile, Texas Lieutenant Governor Dan Patrick has named a Bitcoin Reserve a top priority for 2025. This move comes despite his previous criticism of the state’s crypto mining industry. Patrick’s agenda also includes initiatives like “Texas D.O.G.E.” and upgrades to the electrical grid, which could benefit Bitcoin miners. Texas has been at the forefront of state-level Bitcoin reserves, with around 15 states currently working on similar legislation.

The push for a national Bitcoin Reserve gained momentum in recent months, but President Trump’s executive order to create a “digital stockpile” was not Bitcoin-specific and did not involve the Federal Reserve. Some fear this move could weaken the drive for a national Bitcoin Reserve, but Texas is determined to move forward with its state-level initiative.

Illinois and Indiana are taking steps to establish a Strategic Bitcoin Reserve, joining other states exploring Bitcoin as a financial asset. Illinois is pushing for a Bitcoin reserve fund, while Indiana is focusing on blockchain applications and Bitcoin investment through ETFs. This movement aligns with initiatives in states like Utah and Arizona, which are advancing legislation to invest public funds in digital assets.

The impact of these policies on state economies and public investments remains to be seen. As more states consider Bitcoin as part of their financial strategy, the potential implications for the broader economy and the cryptocurrency market are significant.

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