Maryland Introduces Strategic Bitcoin Reserve Act

Maryland has followed suit with other states considering digital asset investments by introducing the Strategic Bitcoin Reserve Act. The bill seeks to create a Bitcoin reserve fund that would serve as a financial asset for the state.

Maryland has introduced a legislative proposal, known as the "Strategic Bitcoin Reserve Act of Maryland," to establish a state Bitcoin reserve fund. Sponsored by Delegate Caylin Young, the bill aims to permit the allocation of state funds, specifically those derived from gambling violations, into Bitcoin (BTC).

This initiative reflects the increasing trend among U.S. states to explore digital asset investment in their financial strategies.

Maryland Introduces Strategic Bitcoin Reserve Act

Maryland has joined other states in considering digital asset investments by introducing the Strategic Bitcoin Reserve Act. The bill proposes the creation of a Bitcoin reserve fund, which would be a financial asset for the state.

If passed, the legislation would allow the state treasurer to invest funds, obtained through the enforcement of gambling violations, in Bitcoin.

This proposal aligns with similar efforts across the U.S., where states are evaluating Bitcoin as a potential store of value. Maryland's move comes amidst growing discussions on the role of digital assets in government financial planning.

In a recent CoinGape report, Donald Trump's Crypto Czar, David Sacks, mentioned that his team is considering a Strategic Bitcoin reserve. Sacks stated that this is one of their top priorities as they assess the feasibility of a BTC reserve. The initiative follows Trump's executive order to explore a national digital asset stockpile.

Expanding State-Level Interest

Several states have introduced Bitcoin reserve bills or are actively discussing them. At least 22 states are engaged in discussions, legislative proposals, or actual investments in digital assets. Michigan and Wisconsin have already allocated portions of their retirement funds to Bitcoin exchange-traded funds (ETFs).

The increasing interest in Bitcoin reserves has gained momentum following federal discussions on cryptocurrency policy. While no federal legislation has been enacted, state-level initiatives continue to progress.

Earlier this week, New Mexico introduced Senate Bill 57 (SB57) to establish a Strategic Bitcoin Reserve. The bill, sponsored by Senator Ant Thornton, aims to allocate 5% of public funds to Bitcoin as an alternative investment. The reserve would be managed by the State Investment Officer under the State Investment Council's supervision.

Utah Advances Digital Assets Bill

Utah's legislative efforts toward digital asset investments have reached a new stage. The state's House of Representatives recently passed a bill that would allow the state treasurer to invest in select cryptocurrencies. The bill now advances to the Senate for further approval.

If enacted, the law would permit investments in stablecoins and cryptocurrencies with a market capitalization exceeding $500 billion. Currently, Bitcoin is the only digital asset that meets this threshold. The bill's passage through the House indicates growing legislative support for cryptocurrency investment strategies.

Furthermore, Kentucky has entered the digital asset scene with a new bill, KY HB376, which would permit the State Investment Commission to allocate up to 10% of excess state reserves to Bitcoin and other digital assets.

Kentucky joins other states considering similar measures to diversify their financial holdings. The proposal also includes provisions to restrict the use of central bank digital currencies (CBDCs) within the state.