Key Points
- New Mexico has joined the Bitcoin Reserve movement, with plans to allocate 5% of public funds to purchase BTC.
- Despite 15 states making progress with BTC Reserve bills, none have been enacted yet and odds for a national BTC Reserve by 2025 are below 50%.
New Mexico has become the most recent U.S. state to enter the Bitcoin Reserve movement, a trend that has been gaining momentum since the last presidential election.
The Reserve bill in New Mexico, if passed, would permit the state to use 5% of its public funds for the purchase of Bitcoin. The bill was formally introduced by Senator Anthony Thornton on February 4th and is currently awaiting review by the Senate Taxation, Business, and Transportation Committee.
U.S. Bitcoin Reserve Race
Several other states, including Wyoming, are also making strides with their Bitcoin Reserve plans. If Wyoming’s plan is approved, the state could invest approximately $300M in Bitcoin as a means to diversify its reserve investments.
Bitcoin Laws, a site that tracks Bitcoin Reserve legislation, reports that 15 states have made some progress with their respective Bitcoin Reserve bills. However, most of these bills are still in the early stages of introduction or first reading by the committee. To date, no bills have been enacted.
While bills in North Dakota and Wyoming have not moved forward, Arizona has taken the lead with its bill progressing to the general floor for a vote.
National Level Discussions
At a national level, David Sacks, Trump’s crypto czar, has confirmed that the president instructed him and the relevant working group to ‘evaluate the idea of a Bitcoin Reserve’. While no specific timeline has been set for the establishment of a national Bitcoin Reserve, the president has asked the working group to submit a framework within 180 days for setting up a ‘national digital stockpile’.
As of now, the odds for the establishment of a national Bitcoin Reserve by 2025, according to Polymarket, are less than 50%. This suggests that the potential for a positive outcome has not been fully factored into Bitcoin’s price.
