In a significant push to regulate and embrace the cryptocurrency industry, nine U.S. states have introduced crypto-related bills in February alone. These proposals range from creating Bitcoin reserves to establishing task forces aimed at shaping state policies on digital assets. This surge in legislative activity reflects the growing influence of the crypto industry, which spent nearly $250 billion supporting pro-crypto candidates during the 2024 federal and state elections.Here’s a breakdown of the latest developments across key states:North Carolina: Investing in Crypto Through ETPsOn February 10, North Carolina lawmakers introduced the NC Digital Assets Investments Act, spearheaded by House Speaker Destin Hall. The bill allows the state treasurer to invest public funds in cryptocurrency through exchange-traded products (ETPs) like ETFs, rather than directly holding digital assets.Key Provisions:ETPs must have a market capitalization of at least $750 billion over the past 12 months.Crypto investments cannot exceed 10% of the state’s total investment funds.Hall emphasized that this move positions North Carolina as a leader in technological innovation and aligns with former President Donald Trump’s vision of making the U.S. a global crypto hub. The bill has passed its first reading and is now under review by the Committee on Commerce and Economic Development.Michigan: Creating a Crypto ReserveMichigan joined the crypto legislative wave on February 13 with a bill introduced by Representatives Bryan Posthumus and Ron Robinson. The proposal aims to amend the state budget to allow the creation of a crypto reserve.Key Provisions:The state treasurer can allocate up to 10% of available funds to crypto investments.Cryptocurrencies can be held directly through secure custody solutions or via ETPs.The state can loan out crypto assets to generate additional returns, provided it doesn’t increase financial risk.Posthumus also voiced support for MichCoin, a hypothetical stablecoin backed by gold and silver, further highlighting Michigan’s ambition to compete with crypto-forward states like Texas. Both bills are currently in committee.New York: Establishing a Crypto Task ForceNew York lawmakers are focusing on understanding the broader implications of cryptocurrency adoption. A bill introduced in the Empire State proposes the creation of a 17-member crypto task force to examine the state of digital assets and their impact.Key Focus Areas:Crypto energy consumption and environmental impact.Comparison of New York’s crypto laws with those of other states.The restrictive BitLicense regime, which has driven many crypto businesses out of the state.New York City Mayor Eric Adams has been a vocal critic of the BitLicense, calling it a barrier to competitiveness. The task force, if enacted, will present its findings to the governor and state legislature by December 15, 2027. The bill is currently under review in the Senate committee.Texas: Expanding Its Bitcoin ReserveTexas, already a leader in the U.S. blockchain industry, is tweaking its earlier Bitcoin reserve bill to include other cryptocurrencies. The new bill, filed on February 12, removes the previous $500 million appropriation cap, allowing the state to invest unlimited funds in Bitcoin and other qualifying digital assets.Key Provisions:Cryptocurrencies must have a market capitalization of at least $500 billion over the past 12 months (currently, only Bitcoin meets this criterion).The bill eliminates restrictions on the amount Texas can allocate to its crypto reserve.State Senator Charles Schwertner expressed optimism about the bill’s passage, noting it is among the Senate’s top 40 priority bills.Other States Joining the Crypto WaveNorth Carolina, Michigan, New York, and Texas are not alone in their crypto legislative efforts. In February, several other states introduced bills to create Bitcoin reserves or allocate state funds to crypto-related investments:FloridaUtahOhioMissouriKentuckyHowever, not all proposals have been successful. Bitcoin reserve bills were previously rejected in North Dakota and Wyoming, despite the latter being considered a crypto-friendly state.The Road Ahead for Crypto LegislationWhile the momentum for crypto legislation is growing, the path to enactment is long and uncertain. Bills must navigate committees, revisions, and political negotiations before becoming law. Additionally, federal regulations on stablecoins and digital assets could provide a framework for states to align their policies.Why This Matters:The flurry of state-level crypto legislation highlights the increasing recognition of digital assets as a critical component of the financial landscape. These efforts aim to foster innovation, attract crypto businesses, and position states as leaders in the emerging digital economy, according to Cointelegraph.
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