During his campaign, Trump made bold promises to establish a Federal Strategic Bitcoin Reserve, and as the inauguration of this incoming president approaches, several states are already considering taking the plunge.

In the campaign for the November 2024 election, Trump made several significant commitments to the crypto industry, among which his intention to establish a US Strategic Bitcoin Reserve has been the most discussed Topics.

As experts continue to debate the feasibility of implementing this move at the federal level and its potential market impact, some states may be looking to join in.

After Trump wins the election, at least three states are considering adopting a unique framework to establish their own Bitcoin reserves. Eli Cohen, General Counsel of Centrifuge, asserted in an interview with CNBC that this development would be very beneficial for the crypto market.

Pennsylvania

On November 12th, less than a week after Trump announced he would be the next president of the USA, Pennsylvania Representative Mike Cabell introduced a bill that would allow the state treasurer to invest state funds in Bitcoin.

This House Bill No. 2664 aims to allow the treasurer to invest 10% of the State General Fund, Rainy-Day Fund, and State Investment Fund in Bitcoin.

Note: The official name of the "Rainy Day" Fund is the Budget Stabilization Fund, which was established to help local administrative units access additional funds during economic recessions to fill fiscal gaps, thus avoiding the reckless increase of tax rates or cuts in essential public expenditures.

Kabel believes that implementing this bill will help protect state Assets from inflation. He asserts that the state's purchasing power has declined an astonishing 20% in just the past four years, while Bitcoin continues to strengthen against the dollar.

So far, Pennsylvania's Strategic Bitcoin Reserves Bill has only one co-sponsor, Representative Aaron Kaufer.

Texas

On December 12, Texas Representative Giovanni Capriglione introduced House Bill No. 1598, which seeks to allow the state to establish Bitcoin reserves in its treasury.

Unlike the proposed Pennsylvania bill that allows the Treasurer to use established state Funds to purchase Bitcoin, the proposed Texas bill would establish reserves by enabling residents to pay fees and taxes using Bitcoin. These reserves would also accept voluntary donations.

The Texas bill also details the establishment and holding period of "cold wallets" (i.e., stored on devices that are not connected to the Internet) and specifies that the reserves must not be sold for at least five years.

Similar to Pennsylvania's Kabel, Capriglione also believes that Bitcoin can serve as an inflation hedge tool, preserving value for Texans.

On Tuesday, Cohen from Centrifuge told CNBC that the Texas bill may face significant infrastructure challenges, as well as the issue of requiring the crypto community to submit wallets for taxation.

Ohio.

Ohio is the latest state to join the Bitcoin craze. On December 17, state representative Derek Merrin submitted a proposal to establish a strategic Bitcoin reserve in the state.

House Bill 703 aims to give state treasurers the flexibility to invest in Bitcoin and, if they choose, to establish reserves from forfeited assets.

Merrin hopes this bill will pave the way for swift legislation in 2025.

The Bitcoin bills in these states are in early stages, much like the proposed national bill, and it is currently unclear whether they will receive the necessary support to become law. However, speculation continues to drive people's enthusiasm for Bitcoin and cryptos.

Editor/Rocky