Wyoming Rep. Jacob Wasserburger introduced a bill called the “State Bitcoin Investment Fund Act” (HB0201), which seeks to establish a strategic bitcoin reserve in the state. The bill seeks to secure the state’s financial future while paving the way for broader adoption nationwide.

HB0201 proposes that a fraction of Wyoming’s state funds be allocated to purchasing bitcoin, thereby diversifying the state’s investment portfolio. According to the HB0201 document, the treasurer of that jurisdiction may invest the general fund, the permanent mineral trust fund, and the permanent land fund in bitcoin, “provided that investments under this subsection do not exceed three percent (3%) of each fund.”

Under the proposed legislation, investments in bitcoin can be made through direct purchases or through investments in regulated bitcoin financial instruments issued by registered investment companies.

They further specify that specialized hardware containing the private keys will be kept in at least two data centers, a multi-party governance structure will be applied to authorize transactions, a disaster recovery protocol will be implemented to ensure access to funds, and periodic audits will be conducted.

If at any time the total market value of bitcoin investments under this section exceeds the percentage limits set forth in subsections (b) and (c) of this section due to market appreciation, the state treasurer shall not be required to sell or otherwise reduce the investments to comply with the limits of this section. The state treasurer shall not make any additional deposits or investments in bitcoin until the percentage of bitcoin holdings is within the limits specified in this section. If the value of investments under this section is at or below the limits specified in this section, the state treasurer may resume investing funds in bitcoin pursuant to this section.

“State Funds for Bitcoin Investment Act” (HB0201)

This strategy not only seeks to tap into bitcoin’s long-term appreciation potential, but also to promote the ideals of decentralization and economic resilience that the digital asset represents. Wyoming is already known for its crypto-friendly environment, thanks to laws like the Wyoming Special Purpose Depository Institution (SPDI) and a host of post-2018 regulations.

“With HB0201, we are ensuring that Wyoming maintains its legislative leadership in the crypto world, offering our citizens the benefits of sound currency and financial sovereignty,” Wasserburger said in a comment on HB0201.

A national effort with high-level support

Wasserburger isn’t content with the state level; his vision is broader. The freshman lawmaker has shown his support for Sen. Cynthia Lummis, who introduced a bill to adopt bitcoin in the U.S. last July, and President-elect Donald Trump in his effort to establish a nationwide bitcoin strategic reserve.

“We strongly support the efforts of Senator Lummis and President-elect Trump to bring the United States to the forefront of the digital economy,” Wasserburger said. “A strategic bitcoin reserve not only ensures our financial stability, but also positions Wyoming and the United States as global leaders in the crypto era.”

This support underscores the growing acceptance of Bitcoin as a strategic asset at a geopolitical level. Proponents of this measure see Bitcoin as a tool to combat inflation, protect against economic instability and strengthen the position of the United States in the new digital economic order.

The economic argument behind HB0201

At the core of HB0201 is a disruptive economic argument. Bitcoin, the “digital gold,” has proven to be an asset with exponential growth over the past decade.

Wyoming is on the cusp of taking a historic step that could inspire other states to reconsider their stance on cryptocurrencies, marking a milestone in the economic history of the state and potentially the country.

However, this is not the only US state with a similar vision. At least 8 other jurisdictions have presented similar plans to include bitcoin in their respective treasuries. By the way, Dennis Porter, co-founder and CEO of the Satoshi Action Fund, said today that 15 other states are preparing to adopt bitcoin as a reserve.