Highlights
- New Mexico has pushed to establish a Bitcoin reserve
- The Bill was proposed by Senator Ant Thornton and will invest 5% of public funds in BTC
- More US States are joining the trend to align with the Federal government push
New Mexico is the latest US State to explore a strategic Bitcoin reserve move. Officially, the State’s legislature has welcomed Senate Bill 57 (SB57), which will see New Mexico invest 5% of public funds in Bitcoin. The Bill was introduced to the New Mexico Senate by Senator Ant Thornton.
New Mexico Bitcoin Reserve Bill
The Bill, as shared on X, dubbed the “Strategic Bitcoin Reserve Act,” focuses on establishing an alternative treasury for the state. The proposed 5% allocation would diversify the state’s funds in Bitcoin and allow it to benefit from its long-term price appreciation.
The Bill also proposed that the State Investment Officer manage this Bitcoin reserve. Notably, the manager will operate under the oversight of the State Investment Council. The Bill also spelled out the need for cold storage as a viable means to safeguard the State’s Bitcoin.
As Senator Thornton defines it, this BTC reserve will diversify New Mexico’s investments away from stocks and bonds. It will also position the state at the forefront of innovation in the growing cryptocurrency industry.
Thornton also emphasized the economic benefits of a Bitcoin pivot, which could attract crypto companies and benefit the local economy. Conditions like transparent reporting and public awareness were also spelled out to make the bill more appealing.
More US States Pushing for a Bitcoin Reserve
Besides New Mexico, other top US States are also exploring the Bitcoin reserve move. As reported earlier by Coingape, Indiana seeks Bitcoin ETF exposure for the state’s retirement funds. The Indiana BTC Bill was filed in late January by Rep Jake Teshka.
Lawmakers in other US States like Utah have also introduced a Bitcoin Bill to benefit the region in the long term. While about 15 states in the US have introduced a Bitcoin Bill, it underscores the growing adoption of the coin.
The move aligns with the Federal Government’s national digital asset stockpile plan. In a recent press conference, Crypto &AI Czar David Sacks confirmed that the government is evaluating a proposal to establish a Bitcoin reserve.
However, the timeline of events or whether the presidential crypto working group will recommend BTC purchases remains unknown.
BTC Price to Benefit
Amid the growing clamor for BTC in state portfolios, analysts have projected the overall impact will be felt in the coin’s price. At the moment, BTC was changing hands for $96,679, up by 1.1% at the time of writing. It has recorded a 24-hour low and high of $96,301.67 and $99,113.20 respectively.
If proposals from Utah and other states get approved and public funds are injected into the coin, its market cap will soar. This will not only push prices upward but ultimately help in curtailing the volatility of the growing asset class.
CoinGape
