- Texas has passed Senate Bill 21, allowing state investment in Bitcoin, while New Hampshire’s similar bill advances through committee with a 16-1 vote.
- Trump’s recent announcement of plans for a federal strategic crypto reserve has accelerated state-level initiatives to invest public funds in digital assets.
- Utah remains close to finalizing legislation permitting up to 5% investment of certain public accounts in bitcoin, but faces a tight legislative deadline this week.
Several U.S. states are advancing legislation to invest public funds in cryptocurrencies, with Texas emerging as a frontrunner following President Trump’s declaration to establish a federal strategic crypto reserve. The movement reflects growing institutional acceptance of digital assets as potential reserve holdings amid concerns about national debt and inflation.
On Thursday, the Texas state senate passed the SB 21 bill, authorizing the state to allocate a portion of public funds into digital assets, specifically bitcoin (BTC). Texas Senator Charles Schwertner advocated for the legislation, stating that bitcoin “has proven itself through multiple boom and bust cycles,” making it a valuable reserve asset during periods of “devastating national deficit” coupled with “inflation and uncertainty.”
Meanwhile, New Hampshire is making similar progress, having passed a bill on Wednesday through a state house committee. The House Bill 302 received overwhelming support with a 16-1 vote, proposing to permit investment of up to 5% of public funds into bitcoin and other precious metals. While advancing, the bill still requires additional approvals before becoming law.
Approximately a dozen states have initiated efforts to pass similar legislation, though at least five states have encountered setbacks or outright rejections of their proposals. Utah has been leading the charge and is just one senate approval away from sending its bill to the governor’s desk. The proposed legislation would allow investment of up to 5% of certain public accounts in digital assets exceeding $500 billion in market capitalization—effectively limiting it to bitcoin at present.
Utah faces a critical deadline as its legislative session expires this week, leaving minimal time for senate approval. If passed by Friday, the bill would proceed to Republican Governor Spencer Cox, who has previously shown support for blockchain policy initiatives.
This surge in state-level cryptocurrency investment initiatives follows President Trump’s Sunday announcement expanding on his plan for a federal strategic crypto reserve. Trump indicated that such a reserve could include XRP, Solana (SOL) and Cardano (ADA) alongside Bitcoin and Ethereum (ETH), though implementation details remain undefined.
Industry leaders have criticized Trump’s inclusion of cryptocurrencies beyond bitcoin, arguing that bitcoin alone most closely resembles traditional reserve assets like Gold. Questions remain about how the government would source these digital tokens and manage such investments.
The race among states continues as they position themselves to potentially become the first to officially allocate public funds to cryptocurrency investments—a move that could reshape how government entities approach reserve asset management in the digital age.
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