Texas, Ohio, and Pennsylvania are poised to establish state-level Bitcoin reserves, distinguishing their initiatives from a federal attempt to create a national Bitcoin reserve. These state proposals vary in purpose. While the federal plan aims to address national debt and secure one million BTC in the U.S. Treasury, state plans focus on local fiscal strategies.
Texas proposes accumulating Bitcoin through taxes and cryptocurrency donations, with a stipulation against selling these assets for at least five years. Ohio and Pennsylvania see Bitcoin as a hedge against the declining value of the U.S. dollar. Ohio has introduced the Ohio Bitcoin Reserve Act, allowing the state treasury to invest in Bitcoin, though specific purchase targets have not been outlined. Pennsylvania’s bill enables the state to allocate up to 10% of its General Fund to Bitcoin investments, potentially deploying nearly a billion dollars.
These state efforts follow Wyoming Senator Cynthia Lummis’s federal bill, advocating a national Bitcoin reserve to counter inflation and national debt. Her proposal includes significant Bitcoin purchases to mirror the U.S. gold reserves.
While these initiatives reflect growing interest and acceptance of Bitcoin as a financial instrument, the passage of such bills remains uncertain. Historical data suggests a slim success rate for such legislative efforts, with only a fraction typically becoming law. Moreover, the viability of these plans is subject to lobbying dynamics and broader economic considerations. Nonetheless, these state-level efforts may transform the landscape of governmental Bitcoin engagement, potentially setting new precedents if implemented successfully.
