Multiple States Consider Following Trump Proposal to Implement Crypto Assets Reserve Plan

Recently, there have been reports that several states are considering implementing their own Crypto Assets reserve plans, a move stemming from a political figure's proposal to establish a national Bitcoin reserve. This proposal has gained widespread support across the country.

Back in May of this year, when this political figure's stance on Crypto Assets was still unclear, a mild suggestion was made: not only to win the Crypto Assets votes but also to ensure that after enduring a stifling anti-Crypto Assets regime, the U.S. Crypto Assets industry, having gone through a disastrous four years, should announce the establishment of a strategic Bitcoin/Ethereum reserve and allocate a certain amount for it.

Two months later, at the Bitcoin 2024 conference held in Nashville, many expect significant announcements, but despite being very close to making commitments during a lengthy pro-Crypto Assets speech, this political figure ultimately did not make a clear statement. Some believe this is merely a delaying tactic until pro-Crypto Assets leaders return to the center of power.

Recent news shows that Pennsylvania lawmakers have introduced a new bill called the "Pennsylvania Bitcoin Strategic Reserve Act." This is the first of its kind, allowing the state's treasury to allocate 10% of its approximately $7 billion state funds to Bitcoin, helping to combat inflation and diversify its investments beyond traditional assets like bonds and cash reserves.

The sponsor of the bill, Pennsylvania Republican Representative Mike Carbell, stated: "This is a visionary move to ensure our state's financial security in the future. By incorporating Bitcoin into our reserves, we not only protect Pennsylvania from the serious effects of inflation but also position our state as a leader in financial resilience and innovation."

As this legislation is introduced, the senators supporting Crypto Assets express their hope to promote a Bitcoin reserve bill nationwide within the first 100 days of the new government taking office. The strategic reserve bill is the second piece of legislation related to Crypto Assets submitted to state legislatures this year. Last month, the state House of Representatives passed a bill that protects residents' rights to self-custody of digital assets and ensures they can use Bitcoin as a payment method.

It is reported that the advocacy organization Satoshi Action Fund, which helped Pennsylvania legislators draft the Bitcoin Rights Bill, is also a behind-the-scenes driver of the new Strategic Reserve Act. The organization's main goal is to help Bitcoin become mainstream at the state level, and so far, it has successfully assisted 21 states in drafting and passing legislation related to Bitcoin. Its founder, Dennis Porter, hopes that strong bipartisan support for the Rights Bill in October will serve as a barometer for the acceptance of the Strategic Reserve Act.

Potter stated: "The Bitcoin Rights Bill passed smoothly in the Democratic-led House with a majority vote of 176 to 26. With public support and interest in Bitcoin reaching an all-time high, we expect both bills to pass and hope they will be signed into law next year."

If the bill is passed into law, Pennsylvania will become the first state to directly hold Bitcoin on its balance sheet, marking the first step towards a greater role for digital assets in state government economic strategies. Cabell said: "This legislation sends a clear message: Pennsylvania is ready to adopt bold modern solutions to ensure economic prosperity for future generations."

Recently, the price of Bitcoin soared by 20% in a week, reaching a historic high of over $93,000 per coin, with a market capitalization exceeding $1.8 trillion. This makes Bitcoin the seventh largest asset in the world, following gold and five major American tech giants including Nvidia, Apple, Microsoft, Amazon, and Google.

Before the United States officially announced the increasing likelihood of the Treasury purchasing Crypto Assets, the surge in Bitcoin sparked speculation that other countries are also taking similar actions in hopes of acquiring this scarce asset before the U.S. government steps in to make purchases.