Three of the 50 US states are expected to create local Bitcoin reserves soon. The draft laws differ from the proposal of the American National Bitcoin Reserve and have local peculiarities.
America is bullish on Bitcoin. Apparently one in five Americans owns some BTC. As the US President pushes for the creation of a strategic Bitcoin reserve, states are working on local reserves. Ohio and Texas proposals to create such reserves are nearing passage; Pennsylvania is following their path as other states consider their considerations.
What are the details of the local proposals compared to the federal bill?
The main difference is that the local proposals have different end goals compared to the federal proposal. The federal bill aims to cover the national debt and provides for the purchase of one million BTC to be stored in the US Treasury.
The Texas bill aims to accumulate Bitcoins by collecting taxes and cryptocurrency donations. In addition, Texas has an embargo on the sale of state-owned Bitcoins for at least five years. Ohio and Pennsylvania are poised to accumulate some BTC as a hedge against the falling USD value. Bitcoins must be purchased from local treasuries. The draft legislation does not specifically address the conditions.
Cynthia Lummis’ bill
The Federal Reserve bill was introduced in July 2024 by Wyoming Senator Cynthia Lummis. Their proposal is called the “Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act.” The Lummis bill is explicitly presented as a means of paying off the U.S. national debt.
Aside from the national debt, Lummis…
