US Bitcoin Reserve Bills Stumble: Is Trump’s Pro-Crypto Stance Just Talk?

Despite Donald Trump’s vocal promises to transform the U.S. into a crypto powerhouse, multiple state-level Bitcoin reserve bills have failed to gain traction. In the past month alone, three such bills in Montana, North Dakota, and Wyoming—home to Bitcoin advocate Senator Cynthia Lummis—were struck down by lawmakers, raising questions about the feasibility of state-backed crypto reserves.

The Debate: Innovation or Speculation?

Proponents argue that these bills would position states ahead of the curve, treating Bitcoin as a strategic asset akin to gold. However, critics remain skeptical, warning that using taxpayer money to accumulate Bitcoin carries significant risks.

“This just smacks of speculation,” said Montana Representative Steven Kelly, who opposed a bill introduced by fellow Republican Curtis Schoemer. His concerns echo a broader hesitation among lawmakers who fear the volatility of digital assets.

Despite these setbacks, over 30 states are actively considering Bitcoin-related legislation, according to Bitcoin Laws, signaling a growing interest in integrating digital assets into state financial strategies.

The ‘Trump Effect’ on Crypto Legislation

Since Trump’s re-election, enthusiasm for pro-crypto policies has surged. His administration has not only appointed pro-industry figures but also issued executive orders aimed at fostering digital asset adoption.

“Donald Trump was sworn in at noon on January 20, and at 12:01, everyone wanted a Bitcoin strategic reserve,” quipped Anthony Scaramucci, hedge fund manager and crypto investor, during a recent London conference.

Yet, despite Trump’s rhetoric, state-level Bitcoin reserve bills continue to struggle. In Montana, House Bill 429—proposing a state fund for digital asset investments—was defeated 59 to 41. North Dakota’s HB 1184, which sought to allocate state funds into a Bitcoin reserve, was rejected by a 57 to 32 margin. Meanwhile, in Wyoming, seven out of nine representatives voted against HB 0201, a bill authorizing Bitcoin investments with public funds.

Some States Push Forward

While some states falter, others are pushing ahead. Utah is on the verge of passing a bill that would allow up to 5% of major state funds to be invested in digital assets. The state’s House Economic Development Committee has an impressive track record, making Utah a strong contender to establish a Bitcoin reserve, according to Satoshi Action Fund CEO Dennis Porter.

Arizona is also making strides with its Strategic Bitcoin Reserve Act. The bill, which aims to use Bitcoin as a savings tool for the state, recently passed the Senate Finance Committee and is now headed for further debate. If approved, it could allocate up to 10% of state and public funds—including pension funds—into Bitcoin.

BitGalactic’s Take: Symbolic Moves or Real Change?

From a broader perspective, BitGalactic sees these developments as a litmus test for U.S. crypto policy. While Trump’s administration is making headlines with pro-crypto rhetoric, the real battle lies in state legislatures. The failure of these bills suggests that lawmakers remain cautious, prioritizing fiscal stability over aggressive Bitcoin adoption. However, states like Utah and Arizona could set a precedent, proving that Bitcoin reserves are not just speculative bets but a viable financial strategy.

The question remains: Is the U.S. truly ready to embrace Bitcoin at a governmental level, or is this just another case of political grandstanding? Only time will tell.