US state Bitcoin reserve bills will pour $23B into the market if approved

Twenty US states are pushing for Bitcoin reserve bills, and if passed, they could throw $23 billion (247,000 Bitcoins) into the crypto market, according to a prediction from VanEck analyst Matthew Sigel that was posted on X today.

Massachusetts, Ohio, Texas, Illinois, Arizona, Iowa, Maryland, New Mexico North Carolina, and Florida among others have already introduced Bitcoin reserve bills, and more (like Utah and Montana) are debating drafting theirs, as you can see in the image below.

The proposed plans would funnel state money into reserve funds and pension plans, with investments ranging from $50 million to over $8.7 billion per state, depending on how much cash they’re willing to commit.

On January 23, just 3 days after president Donald Trump’s inauguration, he signed an executive order creating a federal crypto advisory council. Standing beside Trump in the Oval that day was David Sacks, the White House Crypto Czar, who then shared that the advisory council “evaluating” a national Bitcoin strategic reserve, as Cryptopolitan reported.

During his campaign, Trump promised to make America a leader in Bitcoin and called himself the “crypto president.” Right now, he is working to reverse SEC policies that restricted digital assets and is setting up new rules to support Bitcoin adoption, according to a report from Bloomberg.

Some states like Maryland plan to buy Bitcoin using general state funds, while others like North Dakota are looking at donations, gifts, and even seized criminal assets to fund their reserves.

While lawmakers fight over Bitcoin investments, crypto fraud is skyrocketing. A Chainalysis report released yesterday estimates that crypto scam revenue hit $9.9 billion in 2024. That number is expected to rise to $12.4 billion as more scam wallets are uncovered.

One of the most profitable scams was pig butchering, where scammers pose as investors or romantic partners, build trust through social media and dating apps, and trick victims into putting their money into fake crypto schemes. According to the report, once the money is sent, the scammer vanishes.

Elad Fouks, head of fraud products at Chainalysis, said scammers are using Generative AI to make their operations more convincing and harder to detect. “GenAI enables the generation of realistic fake content, including websites and listings, to power investment scams, purchase scams, and more, making these attacks more convincing and harder to detect,” Fouks said.

As states move toward buying Bitcoin, scams and fraud continue to rise, creating a high-stakes environment for both governments and crypto markets.