States Race to Build Bitcoin Reserves

American states are engaged in a competitive race to establish bitcoin reserves, with several proposals and bills introduced in recent weeks. In Texas and Oklahoma, new proposed bills focused on crypto investments have joined similar plans in other states, such as Wyoming and Colorado.

In Maryland, delegate Caylin Young has proposed establishing a bitcoin reserve fund, with a hearing scheduled for March 6. The bill would allow the state treasurer to invest funds obtained through enforcing certain gambling violations in the crypto asset, according to a proposal synopsis.

Kentucky's House Bill 376 authorizes the State Investment Commission to make investments in certain digital assets and bullion, including stablecoins with appropriate US approval and digital assets with a market cap exceeding $750 billion over the previous calendar year. Similarly, Iowa's House File 246 uses the same market cap figure for its legislation.

In Utah, a proposal allowing the state to allocate up to 5% of certain public funds to cryptocurrency has moved onto the state senate. Meanwhile, North Dakota's House rejected a similar plan.

ProChain Capital's David Tawil has noted the strategic bitcoin reserve race is "on and real," with large investors, including municipalities, pension funds, and nation-states, competing to accumulate bitcoin as a digital gold and safe haven reserve asset. While specifics around the federal government's possible BTC-buying plans remain unknown, there will be plenty to watch at the state level.