Trump wants to turn the ‘crypto capital’ into-more and more American states are building Bitcoin reserve

President Donald Trump takes a completely different path than his predecessors when it comes to crypto. His ambition is clear: he wants to turn the United States into the “crypto capital of the world”. He reinforces that ambition with concrete action.

In March he gave the green light for the establishment of a National Bitcoin (BTC) reserve. That decision has now also set other US states in motion. Some have already adopted legislation to build a Bitcoin reserve themselves.

More and more states are focusing on Bitcoin

A clear trend is visible in the US: more and more states are taking Bitcoin seriously and building their own BTC reserve. New Hampshire, Texas and Arizona are the first three states to really work on it. This gives Bitcoin slowly but surely an official place in the financial system of some states.

New Hampshire was at the forefront. There, Governor Kelly Ayotte signed the HB 302 Act earlier this year, with which the state can invest up to 5% of its public funds in digital assets such as Bitcoin, but also in gold.

In principle, the state may also invest in other cryptos, although the rules are strict. For example, a crypto coin must have had a market capitalization of at least $ 500 billion in the past year. Ethereum (ETH) is just below that with $ 456 billion, but may be eligible soon.

Texas and Arizona choose their own course

Texas also embraces Bitcoin. With the establishment of a ‘Strategic Bitcoin Reserve’, the state of BTC is officially part of the reserves. The state can obtain Bitcoin via purchases, donations and even airdrops. Governor Greg Abbott calls it “protection against inflation and economic shocks.”

Arizona tackles it slightly differently. There was no law for an official reserve, but since then the state has been able to hold crypto that was obtained through seizures. Arizona indirectly builds on its own cryptor reserve.

Many more states in the pipeline

Chances are that it will not stop with these three. In no fewer than 17 other states are ready for legislative proposals that must ensure similar policy. Ohio is a good example of this: the Republican representative Steve Demetriou recently submitted a proposal to also introduce a Bitcoin reserve.

Yet not everyone is equally enthusiastic. In five states, including Montana and Pennsylvania, similar plans have been voted out. The biggest worries? The volatility of crypto and the risks for state capital.

National BTC reserve smaller than expected?

Within the crypto world, the announcement of a national Bitcoin reserve was responded to enthusiasm. For a long time it was thought that the US government owned around 200,000 BTC – good for nearly $ 24 billion at a rate of $ 118,800.

But according to new documents, shared by journalist L0LA L33TZ, the actual number is a lot lower: 29,000 BTC. That amounts to around 3.45 billion dollars. Still a good amount, but a lot less impressive than expected.