The race for the U.S. eight states! Is the strategic Bitcoin reserve legislation battle about to erupt?

With the advancement of local legislative assemblies, US states have not waited for Donald Trump to fulfill his promise to establish a national "strategic" Bitcoin reserve, but have taken action on their own initiative. Currently, eight states have proposed bills to establish a cryptocurrency reserve. Although this move has sparked strong reactions among long-term cryptocurrency advocates, the call may not be more meaningful than just noise. After the approval of a "strategic" Bitcoin reserve at the federal level, states are exploring relevant legislation on their own. Randy Erben, a part-time professor at the University of Texas Law School, pointed out: "The perspective of blockchain people is completely wrong. This is not a top priority for the two-party leadership or governors. They may be interested in it, but this is not a bill that must be passed because the amount involved is very low." Lee Bratcher, chairman of the Texas Blockchain Committee, stated that Texas has been drafting relevant legislation for the past three years. In December 2024, Texas Congressman Giovanni Capriglione submitted the "Strategic Bitcoin Reserve Act," which would allow the state to accept Bitcoin donations from Texas residents and US companies to establish its reserve. States like Massachusetts, Wyoming, and New Hampshire have followed suit. According to one lobbyist, at least 13 states are preparing to propose similar legislation. Bratcher said: "We are working hard to pass our bills in Texas before President Trump establishes a national Bitcoin reserve. We want to ensure that the United States is at the forefront of the next digital revolution, but we hope Texas can lead the way. This is a friendly competition." In addition, Erben pointed out that one of the main obstacles faced by states like Texas in passing strategic reserve legislation is that many local governments do not accept Bitcoin as legal tender. He explained: "State banking departments do not view virtual currency as money, so they do not regulate it. The only virtual currency recognized as fund transfer in Texas is third-party exchanges or stablecoins." Nevertheless, cryptocurrency-friendly states like Florida have also adjusted their priorities for the upcoming legislative sessions, with the creation of a Bitcoin strategic reserve as a top agenda item. Samuel Armes, chairman of the Florida Blockchain Business Association, said: "If Kamala Harris wins, we will take a defensive stance to ensure that cryptocurrency does not flow out of the US. But for now, we can look ahead as much as possible, see how to double the investment of the state government and start investing in these assets." Proposed US Bitcoin strategic reserve initiative faces legislative challenges In July 2024, President Trump and Wyoming Senator Cynthia Lummis first proposed the idea of establishing a national strategic Bitcoin reserve. Lummis' bill called for the US to purchase 1 million Bitcoins, while Trump's proposal called for the government to retain ownership of about 200,000 tokens already acquired after asset seizures. This initiative is part of a series of commitments made by Trump during his presidential campaign to make the US the "global capital of cryptocurrency." Erben added that state legislatures have limited meeting times and low meeting frequencies. For example, the Texas legislature meets only once every two years, which means lawmakers have to wait longer to address issues such as school funding and repairing the power grid within the next five months. He pointed out: "Legislators do not like voting on new things. They are happy to let the federal government take action on cryptocurrencies, but they want to see it in action elsewhere before considering accepting it." Dennis Porter, founder of the non-profit Bitcoin advocacy organization Satoshi Action Fund based in Portland, Oregon, stated that he is a key driver for promoting strategic Bitcoin reserve legislation in several other states. The organization was established in 2022, and Porter told Bloomberg News that since the November election, his organization has significantly expanded the scope of Bitcoin purchases in various states by working with local legislators to propose reserve bills. However, Dominic Folino, founder of the Pennsylvania Blockchain Association, stated that promoting legislation does not equate to passing legislation. Last November, Pennsylvania Congressman Mike Cabell introduced a bill with the help of Satoshi Action Fund, planning to allocate 10% of the Pennsylvania state treasury reserve to Bitcoin - but only if he loses the next election. Folino pointed out that the presence of external organizations hinders the ability of the state to push for workable cryptocurrency legislation, especially in a state historically unfriendly towards cryptocurrencies. He emphasized: "It's one thing for Pennsylvanians to come up with their own strategies, but it's another thing when people from Oregon come and say 'this is a great bill, you should do it.' Just because someone proposes legislation does not mean it will pass."