Key Points
- Wyoming and Massachusetts are considering integrating Bitcoin into their state asset reserves.
- Polymarket predicts a 56% chance of a U.S. Bitcoin reserve within Trump’s first 100 days in office.
The adoption of Bitcoin [BTC] continues to rise, with more U.S. states considering its integration into their public asset reserves.
States Joining the Bitcoin Reserve Race
Wyoming and Massachusetts have joined the list of states considering Bitcoin-backed initiatives, with lawmakers introducing draft legislation in both states. By January 2025, it is expected that at least 15 states will include Bitcoin in their reserves. Prior to Wyoming and Massachusetts, Texas and Oklahoma also introduced legislation permitting investments in stablecoins and other top-performing cryptocurrencies.
Impact on Wyoming
If approved, Wyoming could soon include Bitcoin in its state-managed investment portfolios, totaling nearly $30.8 billion in assets in 2024. The bill would allow Bitcoin to be added to key funds such as the general fund, the Permanent Mineral Trust Fund, and the Permanent Land Fund. If the bill passes, Wyoming could allocate over $300 million to Bitcoin investments, marking a significant step towards diversifying its asset reserves. This initiative has received strong support, including backing from influential figures like Senator Cynthia Lummis.
Massachusetts’ Bitcoin Bill
Massachusetts Senator Peter Durant has introduced Senate Docket 422 (SD422), titled “An Act Relative to a Bitcoin Strategic Reserve.” The proposed bill would enable the Massachusetts State Treasurer to invest up to 10% of the annual deposits in the Commonwealth Stabilization Fund into Bitcoin or other digital assets. With the fund valued at over $8 billion as of 2024, the state could allocate up to $800 million to Bitcoin under this proposal.
Future of Bitcoin in the U.S.
Data from Polymarket currently suggests a 56% chance that President-elect Donald Trump will establish a Bitcoin reserve within his first 100 days in office. Coinbase CEO Brian Armstrong publicly supported the proposal, advocating for the creation of a U.S. strategic reserve in Bitcoin. Armstrong’s endorsement adds weight to the growing call for integrating Bitcoin into the country’s financial framework.
Way Ahead
The crypto community is optimistic about President Donald Trump’s potential pro-crypto executive actions, particularly on his first day in office. Among the most anticipated moves are the possible ‘freezing’ of crypto lawsuits and the establishment of a Bitcoin Reserve (SBR). On the 17th of January, Polymarket’s odds of a U.S. SBR rose to 44%, following reports that Trump would initiate a ‘national Bitcoin stockpile’ and make crypto a ‘national priority.’ These developments have sparked enthusiasm for the role Bitcoin could play in the nation’s economic future.