Lawmakers in Maryland, Iowa, and Kentucky are pushing for new laws to establish Bitcoin strategic reserves in their states, bringing the total to 17 states considering this move. Kentucky’s House Bill 376, led by Representative TJ Roberts, aims to diversify state investment options to include Bitcoin, allowing investments in digital assets only if they have a Market cap over $750 billion. Maryland’s bill proposes a Bitcoin Reserve Fund, using funds from gambling violations, while Iowa’s legislation offers investment opportunities for precious metals and digital assets. All three proposals reflect a growing trend to integrate Bitcoin into state financial strategies while regulating investments in this digital currency.
Lawmakers in Maryland, Iowa, and Kentucky are making headlines as they introduce new legislation aimed at creating Bitcoin strategic reserves for their states. This recent movement adds to a growing trend, with 17 states across the U.S. now considering Bitcoin as a financial asset. The primary goal is to integrate Bitcoin into state financial strategies, allowing for more flexibility in investments.
In Kentucky, House Bill 376, led by Representative TJ Roberts, seeks to modernize the state’s financial practices. This bill expands investment options for surplus state funds, enabling the State Investment Commission to include digital assets like Bitcoin in their portfolio. With a requirement that digital assets have a Market cap of at least $750 billion, Bitcoin is the only cryptocurrency that meets this criterion as of February 2025, while others like Ethereum fall short.
Kentucky’s bill permits a maximum of 10% of state fund excess cash to be invested in digital assets. It also opens doors for state agencies to accept payments in Bitcoin and gold but prohibits the use of central bank digital currencies (CBDCs). Notably, the framework established within the bill provides guidelines for managing digital asset transactions and ensures conversion to U.S. currency when required.
Meanwhile, Maryland’s House Bill 1389, introduced by Representative Caylin Young, proposes the creation of the Maryland Bitcoin Reserve Fund. This unique approach allows the State Treasurer to funnel funds from gambling violations directly into Bitcoin, establishing Bitcoin as a reserve asset for the state.
In Iowa, House File 246, presented by Representative Taylor Collins, further broadens the investment landscape. This legislation allows the State Treasurer to invest in digital assets, precious metals, and stablecoins, as long as those assets meet the $750 billion Market cap requirement. The bill limits digital asset investments to 5% of the state’s available public funds at the time of investment.
As more states explore the inclusion of Bitcoin in their financial strategies, the future of digital assets like Bitcoin becomes increasingly prominent in state governance.
Tags: Bitcoin legislation, digital assets, state financial strategies, Kentucky Bitcoin bill, Maryland Bitcoin reserve fund, Iowa digital assets.
What is the proposed legislation for Bitcoin reserves in Maryland, Iowa, and Kentucky?
Maryland, Iowa, and Kentucky are considering new laws to create Bitcoin reserves. This means that these states want to hold Bitcoin as part of their official financial resources. The goal is to take advantage of Bitcoin’s rising popularity and potential value.
Why do these states want to establish Bitcoin reserves?
The states believe that Bitcoin can offer financial benefits. Holding Bitcoin could help improve their financial stability and provide new investment opportunities. They also want to be part of the growing trend of digital currencies.
How would the Bitcoin reserves be managed?
Each state would set up a plan to manage the Bitcoin they hold. This could involve working with financial experts to ensure the Bitcoin is bought and stored safely. The management aims to keep track of changes in value and make wise investment choices.
What are the benefits of having Bitcoin reserves?
Having Bitcoin reserves might help these states financially. It could attract tech-savvy investors and improve their reputation in the digital economy. Additionally, Bitcoin could provide a hedge against inflation and economic downturns.
Are there any risks associated with Bitcoin reserves?
Yes, there are risks. Bitcoin prices can be very unstable, which means the value might go up and down a lot. States must carefully consider these risks before deciding to hold Bitcoin as part of their finances.
