US states may adopt Bitcoin reserves first

Senator Cynthia Lummis predicts that U.S. states are likely to adopt Bitcoin (CRYPTO:BTC) reserves ahead of the federal government.

Lummis conveyed this expectation on Feb. 28 during the Bitcoin Investor Week conference held in New York.

"My bets are that you’ll see a state have a Bitcoin strategic reserve before the federal government," Lummis stated.

In July 2024, Lummis, a Republican senator representing Wyoming, introduced the BITCOIN Act.

According to Lummis’ website, this legislation aims to have the U.S. Treasury Department gradually accumulate 1 million BTC.

The intended goal is to acquire "a total stake of approximately 5% of total Bitcoin supply, mirroring the size and scope of gold reserves held by the United States."

In January, President Donald Trump signed an executive order directing federal officials to investigate the feasibility of establishing a national Bitcoin stockpile.

Furthermore, in February, Trump signed another order to establish a sovereign wealth fund, which could potentially be utilized for Bitcoin acquisition.

Lummis pointed out that other nations, such as the United Arab Emirates, are purchasing Bitcoin, and various sovereign wealth funds may follow suit.

There are currently 18 U.S. states with crypto reserve bills awaiting Senate votes.

Arizona and Utah have reached the final stages of the approval process.

However, crypto investment bills have faced rejection in Montana, Wyoming, North Dakota, South Dakota, and Pennsylvania.

Ashley Gunn, Coinbase’s senior manager for U.S. policy, said during a Feb. 28 ETHDenver panel that numerous states are pro-crypto, irrespective of traditional political affiliations.

Launched in January 2024, U.S.-based Bitcoin ETFs currently hold over $100 billion worth of BTC.

At the time of reporting, the Bitcoin (BTC) price was $92,649.39.