Bitcoin Reserves: States Racing Ahead of Uncle Sam! 🚀💰

In a twist of fate that even the stars could not have predicted, states are poised to embrace Bitcoin (BTC) reserves before the grand old US federal government decides to wake up from its slumber. Senator Cynthia Lummis, with a twinkle in her eye, proclaimed this revelation on Feb. 28 at the Bitcoin Investor Week conference in the bustling heart of New York. 🌆

“My bets are that you’ll see a state have a Bitcoin strategic reserve before the federal government,” she quipped, as if placing a wager at a racetrack, according to a report from Bloomberg. 🏇

In the summer of 2024, Lummis, a stalwart from Wyoming, proposed a piece of legislation that would compel the US federal government to create a national Bitcoin stockpile. Yes, you heard it right! A stockpile! Sounds like a treasure hunt, doesn’t it? 🗺️

Her bill, affectionately dubbed the BITCOIN Act, calls for the US Treasury Department to gradually hoard 1 million BTC, ultimately aiming for a stake of about 5% of the total Bitcoin supply. It’s like trying to mirror the size of gold reserves held by the United States, but with a digital twist! 💎

Progress toward a Bitcoin reserve

In a move that could only be described as “better late than never,” US President Donald Trump signed an executive order in January, mandating federal officials to study the feasibility of a national Bitcoin stockpile. This was one of the first actions of Trump’s second presidential term, which kicked off on Jan. 20. Talk about starting with a bang! 💥

In February, Trump followed up with another order, instructing the US government to create a sovereign wealth fund. This could potentially serve as a vehicle for buying BTC. Who knew the government could be so adventurous? 🚗💨

“We’re seeing the United Arab Emirates purchase Bitcoin. You’re going to look at some of the sovereign wealth funds around the world who are not as tied up in a democratic republic like we are, be able to just make it so,” Lummis reportedly said, with a hint of envy. 🌍

Currently, 18 US states have crypto reserve bills pending Senate votes, while two — Arizona and Utah — are in the final stages of the approval process. It’s like a race, but with more digital coins and fewer horses! 🐎💰

State crypto investment bills have been rejected in Montana, Wyoming, North Dakota, South Dakota, and Pennsylvania. It seems some states are still stuck in the past, clinging to their traditional ways. 🕰️

While some states run by Democrats might resist Trump’s crypto-friendly stance, others are expected to embrace crypto as a bipartisan issue. “There are so many states out there that are pro-crypto, and they don’t necessarily follow blue or red policies,” Ashley Gunn, Coinbase’s senior manager for US policy, said during a Feb. 28 ETHDenver panel attended by CryptoMoon. 🌈

Establishing a strategic Bitcoin reserve in the United States would accelerate Bitcoin’s adoption even more than 2024’s exchange-traded fund (ETF) launches, according to cryptocurrency researcher CoinShares. They must be onto something! 📈

“We believe that the enactment of the Bitcoin Act in the United States would have a more profound long-term impact on Bitcoin than the launch of ETFs,” CoinShares stated, sounding like they’ve seen the future. 🔮

Launched in January 2024, US-based Bitcoin ETFs hold upward of $100 billion worth of BTC. That’s a lot of digital gold! 🏆

2025-03-01 00:28

Progress toward a Bitcoin reserve

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