CryptoRank recently highlighted that 18 U.S. states were reviewing the establishment of a government-based strategic Bitcoin reserve, while 33 other states were considering the idea. The report also revealed that Utah was the only state that had managed to advance its reserve bill to the second Senate chamber.
Oregon, New Mexico, Texas, Arizona, New York, Pennsylvania, Ohio, Illinois, North Carolina, South Carolina, Kansas, Missouri, and Kentucky are some of the states with bills in the first Senate chamber. Pennsylvania, Alabama, Florida, Iowa, and Maryland are among the first states to introduce the Bitcoin reserve.
Senator Cynthia Lummis introduced the idea of a national strategic Bitcoin reserve in July 2024 through The Bitcoin Act Bill. The senator outlined rising inflation that affected consumers across the country and rising national debt as some of the reasons behind creating the bill. Lummis also mentioned the transformation Bitcoin was enacting in the U.S. and globally. The senator insisted that implementing a BTC strategic reserve would place the country at the forefront of financial innovation.
The bill outlined plans for the government to accumulate 5% of the total Bitcoin supply through 1 million BTC purchases over the next few years. The senator further suggested that the government should sell part of its gold reserves to provide funds for BTC purchases. Senator Lummis is still working toward passing the bill at the Federal level while different states work toward their state-level bills.
President Trump orders the exploration of a national BTC strategic reserve
President Trump ordered his administration after his inauguration to explore the possibility of the country creating a BTC stockpile. The president’s announcement confirmed his plans to uphold the promises he made to promote digital asset use in the country. Trump still did not include the strategic Bitcoin reserve in his two executive orders, which focused on promoting the country’s dominance in digital asset technology.
During an interview at the NYSE, The president reiterated his plans to establish the reserve in December. Trump promised that his administration would “do something great” with crypto, reiterating his wish to ensure the U.S. led the race ahead of China, Russia, and other competitors. The president further highlighted that the reserve would be similar to the U.S. oil stockpile.
Coinbase’s CEO and co-founder Brian Armstrong commented on the administration’s efforts to lead in crypto during the January World Economic Forum in Davos. The Coinbase CEO mentioned that the possibility of a strategic BTC reserve was high and that President Trump was enthusiastic about becoming “the first Bitcoin president.” Armstrong also reiterated that any country that holds gold should hold BTC, highlighting the U.S.’s abundance of reserves for other assets.
CoinShares researcher James Butterfill recently outlined the impact a strategic Bitcoin reserve would have on BTC. Butterfill explained that a reserve in the country would influence the coin’s prices more than the launch of spot Bitcoin ETFs. The analyst further highlighted that the establishment of the reserve would increase the demand and adoption of crypto.
Bitcoin reserves in 20 states could trigger buying of $23B in BTC
We analyzed 20 state-level Bitcoin reserve bills.
If enacted, they could drive $23 billion in buying, or 247k BTC.
This sum is independent of any pension fund allocations, likely to rise if legislators move forward. pic.twitter.com/5AZnkiwTZf— matthew sigel, recovering CFA (@matthew_sigel) February 12, 2025
VanEck’s head of digital asset research, Matthew Sigel revealed earlier this month that 20 states implementing the strategic Bitcoin reserve plan could trigger BTC purchases worth $23 billion or equivalent to 247,000 BTC. The VanEck research explored the bills across 20 states, including Oklahoma, North Dakota, South Dakota, New Mexico, Montana, New Hampshire, Kentucky, Texas, Iowa, and Utah.
Sigel confirmed that the estimate had eliminated some of the states’ expected investments due to a lack of information. The VanEck digital asset research head added that the research excluded pension funds. In his opinion, including retirement funds would increase the estimated BTC purchase amount expected after the implementation of the Bitcoin reserve bills in the states.
Gems Launchpad’s CEO Isaac Joshua reportedly mentioned BTC’s increasing popularity as a reserve asset due to increased adoption by institutions and governments. Bitcoin Treasuries data has notably revealed that about 160 U.S. companies own BTC or have Bitcoin-based reserves, including the Trump-backed World Liberty Financial.
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