Author: Liz Napolitano

Compiled by: Felix, PANews

Donald Trump and his political allies are pushing the U.S. Treasury Department to establish a nationwide plan to hold Bitcoin reserves.

Now, as Bitcoin prices continue to hit new highs since Election Day, some U.S. states are starting to follow suit.

So far, five states have proposed establishing strategic Bitcoin reserves, and digital asset advocates are also calling on other state governments to establish Bitcoin reserves.

Here are the five states considering fortifying their treasuries with the world's most valuable digital currency.

Texas

Texas lawmakers will soon weigh whether to establish a strategic Bitcoin reserve.

In December 2024, Texas State Representative Giovanni Capriglione introduced a bill calling for Texas to establish a Bitcoin reserve.

The legislative draft stipulates that Texas must hold Bitcoin for at least five years. According to the bill, the cryptocurrency must be stored in cold storage (i.e., stored on some device not connected to the internet), and these assets cannot be used for transactions outside of Texas.

The bill states: "A strategic Bitcoin reserve aligns with Texas' commitment to promoting digital asset innovation and providing enhanced financial security for the people of Texas."

Finally, the proposal also allows Texans to donate to the state's Bitcoin fund.

Pennsylvania

The Pennsylvania House of Representatives introduced a bill in November 2024 calling for the establishment of a strategic Bitcoin reserve.

Under the Bitcoin bill, the Pennsylvania Treasurer would be able to use "up to 10%" of the state's general fund, emergency fund, and state investment fund to purchase Bitcoin.

Utilizing 10% of the state's general fund would allow the Pennsylvania Treasury to purchase nearly $1 billion worth of Bitcoin.

The state lawmakers stated in a legislative memo released on November 12th: "Bitcoin has appreciated significantly over the years and can help Pennsylvania keep pace with inflation and economic changes."

Ohio

Ohio State Representative Derek Merrin introduced a bill in December 2024 to establish a strategic Bitcoin reserve in Ohio.

The "Ohio Bitcoin Reserve Act" requires the establishment of a Bitcoin fund within the state treasury. It also grants the Ohio Treasurer discretionary power to purchase the asset.

Derek Merrin tweeted: "Ohio must embrace technology and protect tax revenue from erosion."

While some details on how the reserve would operate remain unclear, the legislative draft is expected to serve as a framework for Ohio lawmakers to codify in 2025.

New Hampshire

New Hampshire State Representative Keith Ammon introduced a bill on January 10, 2025, proposing the establishment of a "strategic reserve" allowing the state treasury to invest in precious metals (such as gold, silver, platinum) as well as digital assets (including Bitcoin). Although the bill does not mention Bitcoin by name, Bitcoin is currently the only cryptocurrency that meets the high market capitalization requirement.

The bill will introduce new provisions to define "qualified custodians" and "secure custody solutions" to ensure the safe custody of digital assets and allow for operations through regulated trading products.

Keith Ammon stated: "Whether we like it or not, we are tied to the dollar, but this will allow us to invest a small portion of state funds in this uncorrelated new asset class."

Under the bill, the New Hampshire Treasurer will also have the authority to engage in "lending or pledging" activities.

"The last state to establish a Bitcoin reserve will fail," Keith Ammon added. "States must act early, and this requires educating some state government officials."

North Dakota

North Dakota lawmakers introduced a resolution on January 10, 2025, aimed at "investing a portion of state funds in digital assets and precious metals" to mitigate the impact of inflation on the state's finances through diversifying the state's investment assets. The resolution states: "Prudent investment of state fiscal resources is required given the evolving economic conditions and emerging investment opportunities."

The preliminary resolution will be discussed in the coming days and may eventually be drafted and submitted as a formal bill. Notably, although the brief resolution encourages investment in digital assets, it does not mention specific assets. North Dakota Legislative Council Director John Bjornson stated that such a definition "would be more appropriate for a bill."