New Mexico has joined 15 U.S. states proposing to allocate part of public funds to Bitcoin. State Senator Anthony Thornton introduced the bill, which suggests a 5% investment in cryptocurrency.
U.S. Legislative Initiatives on Bitcoin
15 U.S. states, including New Mexico, have drafted bitcoin reserve bills. In states like Arizona and Wyoming, proposals have made progress, while North Dakota has abandoned theirs.
Federal Level Stance
At the federal level, Trump's administration tasked crypto advisor David Sacks to develop a national BTC reserve plan without specific deadlines. Polymarket data indicates a less than 50% chance of a U.S. BTC reserve by 2025.
Economic Prospects and Analysis
New Mexico's 5% allocation would equate to $175 million in BTC investments. Supporters see Bitcoin as a hedge against fiat currency risks, while critics cite BTC’s price volatility and regulatory uncertainty. Despite the initiatives, the total investment in BTC remains small relative to its overall market cap.
Despite active legislative initiatives, the decision to allocate public funds to Bitcoin faces both support and criticism. The future of this direction will depend on regulatory clarity and economic stability.
