With the increasing adoption of Bitcoin [BTC], more and more U.S. states are considering integrating it into their public financial reserves.
States Embracing Bitcoin Reserves
Both Wyoming and Massachusetts have recently joined the group of states exploring Bitcoin-related initiatives. Proposed bills have been introduced by lawmakers in these states.
By the start of 2025, a minimum of 15 states are expected to have Bitcoin included in their reserves. Prior to Wyoming and Massachusetts, Texas and Oklahoma also took steps by allowing investments in stablecoins and other leading cryptocurrencies.
Wyoming’s Potential Bitcoin Integration
In the event of approval, Wyoming might soon see Bitcoin become a part of its state-managed investment portfolios, which were valued at around $30.8 billion in 2024.
The legislation would authorize the addition of Bitcoin to vital funds like the general fund, the Permanent Mineral Trust Fund, and the Permanent Land Fund.
Of these, the largest is the Permanent Wyoming Mineral Trust Fund, with assets close to $11.5 billion. If passed, Wyoming could designate over $300 million for Bitcoin investments, highlighting a significant move towards diversifying its financial reserves.
This initiative has received considerable support, including from prominent figures like Senator Cynthia Lummis.
Bitcoin Proposal in Massachusetts
In a similar vein, Massachusetts Senator Peter Durant has put forth Senate Docket 422 (SD422), titled “An Act Relative to a Bitcoin Strategic Reserve.”
The proposed bill would allow the Massachusetts State Treasurer to invest up to 10% of the yearly deposits in the Commonwealth Stabilization Fund into Bitcoin or other digital assets.
With the fund valued at over $8 billion as of 2024, the state could allocate up to $800 million to Bitcoin under this plan, positioning Massachusetts as one of the states exploring the integration of digital assets into their financial strategies.
Prospects for Bitcoin in the U.S.
Current Polymarket data suggests a 56% likelihood that President-elect Donald Trump will establish a Bitcoin reserve within his initial 100 days in office, indicating a tangible potential for this move to materialize soon.
Further boosting this momentum, Coinbase CEO Brian Armstrong has publicly endorsed the idea, advocating for the establishment of a U.S. strategic reserve in Bitcoin.
Armstrong’s support adds weight to the growing push for incorporating Bitcoin into the nation’s financial system.
In a blog post on Coinbase, Armstrong remarked:
“The upcoming global competition will be in the digital economy, not in space.”
Path Forward
The cryptocurrency community is increasingly hopeful about potential pro-crypto executive actions by President Donald Trump, especially on his inauguration day.
Anticipated moves include the potential ‘freezing’ of crypto-related lawsuits and the establishment of a Bitcoin Reserve (SBR).
By January 17th, Polymarket’s odds of a U.S. SBR had risen to 44%, following reports that Trump might start a ‘national Bitcoin stockpile’ and prioritize crypto at a national level.
These developments have generated growing excitement about the role Bitcoin could play in the country’s economic future.