According to Senator Cynthia Lummis, states may adopt Bitcoin (BTC) reserves ahead of the US federal government. Lummis made these remarks on Feb. 28 during the Bitcoin Investor Week conference in New York.
“I would wager that a state will establish a Bitcoin strategic reserve before the federal government does,” Lummis stated, as reported by Bloomberg.
In July 2024, Lummis, a Republican from Wyoming, introduced legislation aimed at requiring the US federal government to create a national Bitcoin reserve.
The proposed bill, known as the BITCOIN Act, seeks for the US Treasury Department to gradually acquire 1 million BTC, aiming for a total holding that represents about 5% of the total Bitcoin supply, reflecting the scale of gold reserves maintained by the United States, as detailed on Lummis’ website.
Lummis introduced the Bitcoin Act in July 2024. Source: Cynthia Lummis
Related: Michigan becomes the latest state to propose a crypto reserve bill
Advancements towards a Bitcoin reserve
In January, US President Donald Trump enacted an executive order mandating federal officials to assess the practicality of establishing a national Bitcoin reserve. This was one of his initial actions in his second presidential term, which commenced on Jan. 20.
In February, Trump issued another directive instructing the US government to form a sovereign wealth fund, which might be utilized for acquiring BTC.
“We’re witnessing the United Arab Emirates purchase Bitcoin. Other sovereign wealth funds across the globe that are less constricted by democratic processes can easily execute similar strategies,” Lummis reportedly said.
At present, 18 US states have crypto reserve bills awaiting Senate votes, with two states—Arizona and Utah—nearing the conclusion of their approval processes.
Efforts to pass state crypto investment bills have been declined in Montana, Wyoming, North Dakota, South Dakota, and Pennsylvania.
While states controlled by Democrats might push back against Trump’s pro-crypto viewpoint, many others are anticipated to support cryptocurrency as a bipartisan matter.
“There are numerous states that advocate for crypto, regardless of whether they align with red or blue policies,” Ashley Gunn, Coinbase’s senior manager for US policy, mentioned during a panel at ETHDenver attended by Cointelegraph on Feb. 28.
Implementing a strategic Bitcoin reserve in the US would enhance Bitcoin’s adoption more significantly than the exchange-traded fund (ETF) launches anticipated in 2024, according to cryptocurrency research firm CoinShares, which released a report in January.
“We believe that the passage of the Bitcoin Act in the United States would have a more significant long-term effect on Bitcoin compared to the launch of ETFs,” CoinShares asserted.
Since their launch in January 2024, US-based Bitcoin ETFs now hold assets exceeding $100 billion in BTC.
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