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The list of U.S. states introducing the Bitcoin reserve bill is growing. By the end of the first week of February, North Carolina and Kentucky became the 17th and 16th U.S. states to introduce a potential Bitcoin reserve legislation. Other states that have introduced legislation include Arizona, Alabama, Florida, Massachusetts, Missouri, New Hampshire, North Dakota, South Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, Kansas, and Wyoming. Among them, Wyoming Senator Cynthia Lummis has been a vocal advocate for the benefits of a Strategic Bitcoin Reserve.
Cynthia Lummis and the Initiation of SBR
On July 24th, 2024, U.S. Senator Cynthia Lummis (R-WY) announced a proposal during Bitcoin 2024 to supercharge the U.S. dollar by establishing a strategic Bitcoin reserve. She envisioned a reserve that would help fortify the dollar against rising inflation and strengthen U.S. leadership in a rapidly evolving global financial system.
A week later, on July 31st, 2024, Senator Lummis officially introduced the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act in the U.S. Senate.
“As families across Wyoming struggle to keep up with soaring inflation rates and our national debt reaches new and unprecedented heights, it is time for us to take bold steps to create a brighter future for generations to come by creating a strategic Bitcoin reserve,” said Lummis.
SBR Spreads to Other U.S. States
With time, as we’ve been seeing, the proposal has gained momentum in several other states.
The adoption and structural introduction of the SBR proposal across states indicate growing traction for the adoption of the same at a Federal level.
While discussing the importance of multiple states adopting the legislation, Andy Lian, an author and intergovernmental blockchain expert, said:
“It could drive institutional interest through the roof, pushing other states and even countries to consider similar moves.”
However, Ian also cautioned prospective shareholders about the responsibilities that come with implementing a reserve. These include the need for strong infrastructure, robust custody solutions, cybersecurity measures, and a clear exit strategy in case things do not unfold as expected.
The push for an SBR across states is progressing at different levels. For instance, in North Carolina, the proposed bill allows state lawmakers to invest up to 10% of the state funds into exchange-traded products tied to digital assets with a market capitalization exceeding $750 billion. It also authorizes Bitcoin investments for state-managed funds, including teachers’ and state employees’ pensions, insurance funds, and veterans’ home trust funds.
In Illinois, on the other hand, under the proposed Bitcoin Reserve Legislation, the State treasurer would manage the fund and be permitted to accept gifts, grants, and Bitcoin donations from Illinois residents and governmental entities for deposits. Similar to Illinois, which proposes a minimum Bitcoin holding period of five years, Kentucky has also proposed a BTC holding strategy of five years.
Driving into the Future with Awareness and Innovation
Building the reserve has been a high-priority agenda for most of the states that have proposed it. On January 29, 2025, Senator Cynthia Lummis stated on her X handle that “one of the first orders of business will be to hold public hearings on the Strategic Bitcoin Reserve.” Texas Governor Dan Patrick also announced that establishing a “Texas Bitcoin Reserve” would be one of his top legislative priorities for the 2025 session.
While lawmakers are up to the task, community enthusiasm for the proposed reserve is also high. Enthusiasts have designed a grassroots community-driven meme project to raise awareness and support for the SBR movement. The community positions the reserve as a new paradigm in cryptocurrency investment strategy, which, built on the Ethereum Network, helps combine traditional reserve principles with modern blockchain technology.
As envisioned by Senator Lummis, her proposed legislation required the U.S. to purchase 1 million Bitcoins in four tranches of 250,000 Bitcoins each over four years. With accumulation comes the task of management. Based on statewide legislative proposals, the reserve would need to be managed in coordination with financial services agencies to ensure the asset’s security and utility. It could be used as collateral or sold to help pay down some of the national debt.
As a borderless currency, it could also help manage geopolitical issues over time. Bitcoin, by its inherent virtues and properties of blockchain tech, is a publicly auditable asset and its price could be tracked by the public at any time.
With full transparency and accountability, the possibilities of what national economies could achieve with an SBR are potentially limitless.
