- Despite Trump’s support, Republican lawmakers in states like Montana, North Dakota, and Wyoming have rejected Bitcoin Reserve bills.
- While nearly 30 states have proposed Bitcoin Reserve bills, many have failed due to GOP resistance.
- However, Utah and Arizona are advancing Bitcoin Reserve initiatives, with Arizona’s bill potentially allocating up to 10% of state funds to Bitcoin investments.
Over the past few months, nearly 30 US states have proposed bills to establish Bitcoin (BTC) Reserves, aiming to use the crypto asset as a hedge against inflation.
The majority of the cryptocurrency industry has supported the initiatives, believing successful proposals could trigger billions in Bitcoin acquisitions, but despite the growing momentum, multiple state-level efforts have already failed, and surprisingly, the opposition came from Republican lawmakers, not Democrats.
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Republicans Object to Bitcoin Reserve
Although former President Donald Trump has strongly supported Bitcoin and advocated for a national Bitcoin Reserve, Republican-controlled legislatures have emerged as a significant obstacle to state-level efforts.
For instance, Montana lawmakers recently rejected a Bitcoin Reserve proposal by a vote of 41-59 —despite the state’s House of Representatives being a Republican majority. The Republican detractors called the bill a “speculation with taxpayer dollars”.
In North Dakota, an even redder state, the bill faced even more defections from GOP lawmakers. And in Wyoming, a state known for its pro-crypto policies, Senator Cynthia Lummis, one of the most vocal cryptocurrency advocates in the country, saw her own Republican colleagues overwhelmingly reject a Bitcoin Reserve initiative.
It’s not so bad, at least. In some states, pro-crypto legislation is mounting up. For example, Utah is on the verge of passing a bill allowing up to 5% of several major state funds to be invested in qualifying digital assets. The state’s House Economic Development Committee has a strong track record of advancing such initiatives, so Utah may soon become the first state to establish a Bitcoin reserve.
Arizona is also progressing with its Strategic Bitcoin Reserve Act, which recently passed the Senate Finance Committee in a five-to-two vote. If approved by the Senate Rules Committee, the bill would allocate up to 10% of state and public funds —including pension funds— to Bitcoin.
Related: Crypto Billionaire Changpeng Zhao’s Portfolio Revealed: Here’s What He Holds
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