 US states lead in strategic Bitcoin reserve creation — Will Trump deliver on his BTC promise? 
2025-02-13
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Nearly a third of US states are venturing into a financial frontier once considered to be completely unthinkable: creating a strategic Bitcoin reserve. 
While US President Donald Trump’s vision for a national digital asset stockpile is still developing, US states are not waiting around. Inspired by the success of other countries like El Salvador and the unprecedented support President Trump has shown for the industry, they are charging ahead with their own bold initiatives.
Sixteen US states are considering Bitcoin as part of their investment strategies, with legislation to allow public funds to be allocated to such digital assets already under discussion. In states like Arizona and Utah, where the bill has already passed committee approval, a vote in the chamber is right up their alley—bringing the idea of a Bitcoin reserve closer to becoming a reality rather than just a distant fantasy.
The case for countries and states embracing strategic Bitcoin is becoming more tangible as momentum builds in the US following Trump´s inauguration as president. In his first address to the sector on Feb. 4, White House crypto czar David Sacks said exploring a potential Bitcoin reserve would be “one of the first things we are going to look at” as part of the administration’s internal working group.
In his early days as President, Donald Trump signed an executive order creating a task force to shape US digital asset policies, fueling optimism for widespread crypto adoption. The group has six months to deliver a roadmap, which could define sector regulations and digital asset investment guidelines, along with potentially groundbreaking proposals like a national Bitcoin reserve.
US states are getting serious about Bitcoin
Indeed, some market participants were disappointed Trump did not immediately begin accumulating a strategic Bitcoin reserve. Still, US states are getting serious.
If some of these projects successfully clear their respective legislative procedures, this would mean state-level purchases of Bitcoin very soon—potentially well ahead of any federal government effort. 
Some state legislation, such as Arizona’s, would allow state treasurers to spend as much as 10% of their public funds on Bitcoin, potentially heralding a domino effect among other states. Lawmakers in the US states of Oklahoma, New Hampshire, and Pennsylvania have also proposed allocating up to a tenth of public funds to purchase Bitcoin over a set period.
Reflecting the excitement of many Bitcoin advocates, Eric Trump posted on X on Feb. 5, saying, 
Is Bitcoin a hedge against inflation?
Advocates for a strategic Bitcoin Reserve (SBR) argue that such an investment could serve as a powerful hedge against inflation and currency devaluation. While central banks can print fiat currencies at will, Bitcoin’s fixed supply could help protect a country’s wealth from the usual risks associated with currency depreciation.
After a strong surge, the price of Bitcoin and other cryptocurrencies reversed course in the early weeks of the Trump administration. Initial enthusiasm gradually gave way to the reality that substantial work remains before any significant progress can be made.
Will these initiatives make it across the finish line, or will they remain symbolic gestures in the wake of the crypto frenzy sparked by Trump’s return to the White House?
“We have reached the point where there needs to be some actual government purchases, likely led by the Treasury, for the market to be satisfied,” said Eugene Epstein, head of Trading and Structured Products North America at Moneycorp, in an interview with Cointelegraph. 
A shift in lawmakers’ mindset
Despite concerns and doubts from various analysts, the rapid rise of Bitcoin and digital asset reserve legislation at the state level signals a significant shift in how governments view crypto—perhaps no longer as a speculative asset but rather as a long-term store of value.
Indeed, if the US were to move forward with an SBR, it could fundamentally serve as a massive catalyst for Bitcoin's growth. But political questions remain, with much uncertainty surrounding whether Trump will be able to deliver on a proposal that would likely require a law change.
The US is already the largest sovereign holder of Bitcoin, largely due to judicial seizures and enforcement. According to BitcoinTreasuries.NET data, the US has amassed over 207,000 BTC—roughly 1% of the total 21 million supply. Initial efforts are likely to focus on managing and addressing this existing stockpile, although the administration has given no definitions so far.
While market participants continue to watch closely, many believe the enactment of the Bitcoin Act could have a more profound long-term impact on Bitcoin than the launch of exchange-traded funds (ETFs). Research from CoinShares in January highlighted that such legislation could elevate Bitcoin’s credibility as an asset class and ease institutional adoption by offering the endorsement of the world’s largest government, potentially providing an even greater boost for crypto than the launch of ETFs did.
Eric Weiss, a board member at mining firm Core Scientific, reflected the optimism on X. 
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.