U.S. States Advance Plans To Invest Public Funds In Cryptocurrencies

According to CoinDesk, several U.S. states are advancing efforts to invest public funds in cryptocurrencies, a move encouraged by U.S. President Donald Trump following his announcement of similar federal plans. Texas has emerged as a key player in this initiative. On Thursday, the Texas state senate approved the SB 21 bill, which permits the state to allocate a portion of public funds into digital assets, particularly bitcoin (BTC). Texas Senator Charles Schwertner highlighted bitcoin's resilience through various economic cycles, describing it as a valuable reserve asset amid national financial challenges such as deficits and inflation. New Hampshire is also making strides, with its House Bill 302 passing a state house committee by a 16-1 vote on Wednesday. This bill would allow the state to invest up to 5% of public funds in bitcoin and other precious metals, though it still requires further legislative approval. Nearly a dozen states are pursuing similar legislation, although at least five have encountered obstacles or failed votes. Utah is notably close to passing its own bill, needing only one more senate approval before it can be sent to Governor Spencer Cox, who has previously supported blockchain initiatives. However, with the legislative session ending soon, time is running short for Utah to finalize its decision. President Trump recently reiterated his plan for a U.S. strategic crypto reserve, which could include cryptocurrencies like XRP, Solana (SOL), Cardano (ADA), Bitcoin, and Ethereum (ETH). Despite the announcement, details on the execution of this strategy remain unclear. Industry leaders have expressed skepticism about including cryptocurrencies other than bitcoin, citing its alignment with traditional reserve assets like gold. The president has yet to provide specific guidelines on how the government would acquire these digital tokens. As states like Arizona and Texas continue to push forward, the national conversation on cryptocurrency investments is gaining momentum.