States Take the Lead on Cryptocurrency Investments
As Utah becomes the first state to pass a bill allowing the investment of public money into crypto assets, lawmakers in Kentucky and Maryland are also moving forward with their own measures.
Utah’s Bill to Allow State Money in Digital Assets
Utah’s bill, which survived a tight vote in the Utah House of Representatives, would permit the state treasurer to invest public money in stablecoins or cryptocurrency with a market cap of more than $500 billion. Currently, this only includes bitcoin.
New Bills in Maryland and Kentucky
In Maryland, a new bill introduced by Democrat Delegate Caylin Young pushes for a bitcoin strategic reserve, similar to the one contemplated by U.S. Senator Cynthia Lummis. The reserve would be funded through revenue from the enforcement of gambling violations.
In Kentucky, two bills have been introduced that would open state retirement funds for investment in digital assets exchange-traded funds. The bills would also throw up roadblocks for the use of central bank digital currencies (CBDCs).
Other States Weighing Legislation
Fifteen other states are weighing legislation in their current sessions, with others expected to follow. Michigan and Wisconsin already have portions of their retirement funds in crypto ETFs.
The Surge in State Interest
The surge in state interest mostly developed after the election of President Donald Trump and his stated interest in a strategic stockpile of digital assets. Trump issued an executive order calling for his administration’s crypto working group to examine the possibilities of a crypto stockpile for the U.S., though he’s stopped short of calling for a strategic bitcoin reserve.
Conclusion
As states take the lead on cryptocurrency investments, it remains to be seen how federal lawmakers will respond. With the increasing popularity of digital assets, it’s likely that more states will follow Utah’s lead and explore the possibilities of investing in crypto.
FAQs
Q: What is the Utah bill proposing?
A: The Utah bill would allow the state treasurer to invest public money in stablecoins or cryptocurrency with a market cap of more than $500 billion.
Q: What is the Maryland bill proposing?
A: The Maryland bill proposes a bitcoin strategic reserve, similar to the one contemplated by U.S. Senator Cynthia Lummis. The reserve would be funded through revenue from the enforcement of gambling violations.
Q: What are the Kentucky bills proposing?
A: The Kentucky bills would open state retirement funds for investment in digital assets exchange-traded funds and throw up roadblocks for the use of central bank digital currencies (CBDCs).
Q: How many states are weighing legislation on cryptocurrency investments?
A: Fifteen other states are weighing legislation in their current sessions, with others expected to follow.
Q: Why is the surge in state interest attributed to President Trump’s election?
A: The surge in state interest is attributed to President Trump’s stated interest in a strategic stockpile of digital assets, which led to an executive order calling for his administration’s crypto working group to examine the possibilities of a crypto stockpile for the U.S.
