Some US states might start holding Bitcoin reserves before the federal government, according to Senator Cynthia Lummis. She made this statement on February 28 at the Bitcoin Investor Week conference in New York.
States Moving Faster Than the Federal Government
Lummis believes a US state will create a Bitcoin reserve before the federal government does. In July 2024, she introduced the BITCOIN Act, a bill that suggests the US Treasury should buy 1 million BTC. This would make Bitcoin reserves similar in size to US gold reserves.
Earlier this year, President Donald Trump signed orders for officials to study whether the US should build a Bitcoin stockpile. Another order in February could allow the government to buy Bitcoin through a sovereign wealth fund.
Some States Are Ready, Others Are Not
Welcome to 2025. The year where Governments (state and national) around the world start buying and holding Bitcoin in strategic reserves.
— Tommy Butcher ᛤ Web3 (@tommybutcher) January 10, 2025
I think we can now safely say that Bitcoin is a proven asset class. So if you've been unsure, I think you have your answer. 😁 pic.twitter.com/WriVkVLFEU
Right now, 18 states have pending laws about holding Bitcoin reserves, and Arizona and Utah are close to approval. However, Montana, Wyoming, North Dakota, South Dakota, and Pennsylvania have already rejected similar plans.
Even though some Democrat-led states may resist Bitcoin policies, many support crypto as a bipartisan issue. Ashley Gunn from Coinbase said that many states are pro-crypto, regardless of political views.
Bitcoin Adoption on the Rise
Analysts are of the view that if the US establishes a Bitcoin reserve, it might have a greater impact on the adoption of Bitcoin than the Bitcoin ETFs introduced in January 2024. These ETFs currently have more than $100 billion in Bitcoin holdings, indicating substantial demand for the cryptocurrency.
