- Donald Trump’s plans to create a Strategic Bitcoin Reserve could be in jeopardy following multiple state proposal rejections
- Despite President Trump’s advocacy for a national Bitcoin reserve, state-level initiatives have faced significant opposition
- Concerns over financial risks and the speculative nature of cryptocurrencies have been central to the rejection of these proposals
Donald Trump’s supposed desire to launch a strategic Bitcoin reserve could already be on the rack after three states rejected independent plans to start them. In recent weeks, Montana, North Dakota, and Wyoming have dismissed bills aimed at creating state-managed Bitcoin reserves, reflecting a cautious approach despite federal support from President Trump. Lawmakers have cited potential financial risks and the speculative characteristics of cryptocurrencies as primary reasons for their opposition, all of which undermine Trump’s plans to put Bitcoin front and center.
State-Level Rejections
Montana’s House Bill 429, introduced by Representative Curtis Schomer, sought to allocate up to $50 million of public funds into Bitcoin, stablecoins, and precious metals. Proponents argued this diversification could yield higher returns compared to traditional bonds. However, the bill was defeated in a 59-41 vote, with Representative Steven Kelly expressing concerns that the proposal “just smacks of speculation.”
Similarly, North Dakota’s HB 1184, which aimed to explore the feasibility of a Bitcoin reserve, failed to pass the House with a 57-32 vote. In Wyoming, a state known for its crypto-friendly stance, a proposal to authorize the state treasurer to invest public funds in Bitcoin was rejected by seven out of nine representatives.
These state-level rejections come despite President Trump’s vocal support for integrating Bitcoin into national financial strategies. During his campaign, Trump proposed creating a federal Bitcoin stockpile and has since appointed crypto advocates to key regulatory positions. Prior to this, Senator Cynthia Lummis introduced a bill in July 2024 calling for the U.S. government to purchase 1 million Bitcoin over five years for a national strategic reserve.
Not All Is Lost
While some states have halted their Bitcoin reserve initiatives, others continue to explore similar proposals. Utah’s Blockchain and Digital Innovation Amendments bill, which would allow the state treasurer to allocate up to 5% of public funds to digital assets, has passed the revenue and taxation subcommittee. Arizona’s Senate Finance Committee has advanced a bill proposing that up to 10% of public funds, including pensions, be invested in cryptocurrencies like Bitcoin.
The mixed responses at the state level highlight the ongoing debate over the role of cryptocurrencies in public finance. While federal support under President Trump aims to position the U.S. as a leader in the crypto space, state-level apprehensions underscore the complexities and perceived risks associated with adopting digital assets into government reserves.
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