What’s Up, Traders!
HUGE NEWS dropping in the state-level crypto game! Buckle up because your state might be jumping into crypto before the feds even figure out which way is up!
Let me break this down for you:
💥 State-Level Crypto Rush:
- 16 states are actively pushing legislation to dive into digital assets
- 3 more are seriously eyeing the crypto pool
- Michigan and Wisconsin? They are already in the game with crypto ETFs in their retirement funds!
🔥 Why This Is MASSIVE:
- We're talking BILLIONS of dollars potentially flowing into crypto
- Your state retirement fund might be going crypto whether you planned on it or not
- States aren't waiting for the feds - they're moving FAST
This explosion of interest came after Trump gave the thumbs up to a national crypto stockpile! We've got heavy hitters like Arizona, Pennsylvania, Utah, and Texas drafting bills to open up their wallets to crypto... mainly BTC and some stablecoins for conservative plays.
Think about it: Nearly HALF of U.S. states are either already in crypto or heading that way! When these states start locking up massive amounts of BTC in their treasuries... well, you know what happens to circulating supply! 📈
Here's the wild part - millions of Americans might wake up one day to find out they're crypto investors through their state retirement funds. Talk about mass adoption! But, this might not be a good thing for millions...read on I'll touch on this in a moment.
Michigan and Wisconsin are the trendsetters here, and check this out - other states want to follow their lead by putting state pension money into crypto! That means teachers, cops, and other public servants might soon have their retirement riding the crypto waves! 🌊
Now here's where it gets GOOD for us Hardcore Crypto Investors:
💎 State Treasury Plans:
- Some want to put up to 10% of public funds into crypto
- They're setting a $500B market cap minimum
- Only BTC qualifies right now (King coin staying king! 👑)
Who's Leading the Pack:
- Arizona and Utah already crushing it through committees
- Heavy hitters joining the race: Illinois, Indiana, Kansas, Massachusetts, Missouri, Montana, New Hampshire, North Dakota, Ohio, Oklahoma, South Dakota, Wyoming
- Alabama, Florida, and Kentucky getting ready to jump in!
But wait, there's MORE!
The federal government might make all these state moves look like pocket change! Trump's push for a national crypto stockpile, potentially built from seized crypto (talk about turning lemons into lemonade! 🍋)
Senator Lummis (crypto's MVP in Congress) is going ALL IN with her proposal:
- Year 1: $20B worth of BTC
- Next 4 years: Adding 200K BTC each year
- End goal: ONE MILLION BITCOIN! 🤯
Most of these states pushing crypto are Republican-led, saying they're all about that investment diversity and tech innovation life!
While Lummis' pitch has called it a "Strategic Bitcoin Reserve," it's not — like the petroleum reserve — designed for deployment when economic conditions warrant it. It's structured more as a long-term investment, requiring the U.S. to hold the assets for at least 20 years.
That would be almost 5% of the eventual, finite supply of global bitcoin going untouched for at least two decades. Combined with whatever the states seek to stockpile, U.S. governments would secure a significant percentage of the asset, in addition to the towering reserves held by the U.S. ETF issuers such as BlackRock and Grayscale and corporate investors led by MicroStrategy.
The states' interest in Bitcoin potentially lands Satoshi Nakamoto's ultimate exercise of financial outsiders firmly in the realm of the insiders, adding the asset to the core functions of government. The Bitcoin white paper was meant to establish a system of transactions outside of the need of financial-firm intermediaries or government oversight.
States setting up bitcoin funds managed in part by new laws could become some of the most stable of the industry's institutional investors. Naming Bitcoin as a "strategic reserve" puts the digital tokens on par with gold and oil as economic mainstays, despite the very different nature of cryptocurrencies and their practical weaknesses as an inflation hedge.
From the perspective of their citizens or public employees, states that grab crypto stakes will come away with two potential outcomes: Millions of people will enjoy more comfortable and well-funded retirements or public services, or millions of people will watch a crypto crash eat into the safety net they're counting on.
It could be "disastrous for tens of millions of retirees if government officials gambled with state pension funds to buy bitcoin or crypto," said Dennis Kelleher, CEO of Better Markets, a Washington-based advocacy group that's critical of the dangers of digital assets.
He called the idea of a government bitcoin stockpile "a brazen attempt by a handful of crypto billionaires and their political allies to take money out of Main Street taxpayers’ pockets to create artificial demand for a highly volatile product that suffers from boom-bust cycles, is full of fraudulent trading and pricing in unregulated markets, and has no socially legitimate use, but is loved by criminals."
Wagers on the prediction site Polymarket have put the odds of one of the states beginning to set aside bitcoin reserves before the end of this month at 11%, and the chances of the U.S. setting up such a reserve this year at the national level are at 45%.
It may already be a trend that governments around the world can't ignore.
"We anticipate more nation-states, central banks, sovereign wealth funds, and government treasuries will look to establish strategic positions in bitcoin," Fidelity Digital Assets researchers predicted in a look-ahead report for 2025. "Facing challenges such as debilitating inflation, currency debasement, and increasingly crushing fiscal deficits, not making any bitcoin allocation could become more of a risk to nations than making one."
Until next time, The Dark Sage singing out ✌️
Faucets That Work!
LITECOIN INTEREST RATE RAISED TO 13%
BITCOIN CREDIT CARD up to 15% BACK
CAPITAL ONE ONLINE BANKING (U.S. ONLY)
POLYGON ECOSYSTEM TOKEN FAUCET
GEMINI EXCHANGE 6% SOL STAKING
