New Mexico has made a significant move towards integrating Bitcoin into its financial strategy. Senate Bill 57, introduced by Senator Ant Thornton, suggests allocating 5% of the state’s funds to BTC.
Strategic Bitcoin Reserve Act
The proposed legislation, known as the Strategic Bitcoin Reserve Act, outlines the framework for establishing a Bitcoin reserve within the state’s treasury. The bill suggests that the State Investment Officer oversee the reserve under the guidance of the State Investment Council. Cold storage solutions will be employed to ensure security.
State-Level Bitcoin Adoption
New Mexico is not alone in pursuing Bitcoin reserves. Indiana is considering exposure to Bitcoin through exchange-traded funds (ETFs) for retirement funds. Representative Jake Teshka introduced the Indiana BTC Bill in late January, advocating for the state’s involvement in cryptocurrency investments. Utah is also evaluating a Bitcoin-related proposal, reflecting a broader trend among states considering cryptocurrency integration.
Federal Bitcoin Reserve Discussions
At the federal level, discussions on a national Bitcoin reserve are underway. Crypto & AI Czar David Sacks confirmed that the government is reviewing a proposal for a digital asset stockpile. However, details regarding the timeline or any formal recommendations remain uncertain.
The increased adoption of Bitcoin in state reserves could impact its price stability. Analysts believe that approved proposals injecting public funds into Bitcoin could elevate its market capitalization.
