Maryland Proposes Bitcoin Reserve Act Amid Growing Crypto Adoption

Highlights

Maryland proposed a Bitcoin reserve funded by gambling violation revenues.
Utah’s digital assets bill passed the House, moving to the Senate for approval.
Kentucky’s bill allows up to 10% of excess state reserves in digital assets.

Maryland has introduced the “Strategic Bitcoin Reserve Act of Maryland,” a legislative proposal to establish a Bitcoin reserve fund for the state. Sponsored by Delegate Caylin Young, the bill aims to allow state funds derived from gambling violations to be allocated into Bitcoin (BTC).

The initiative reflects the increasing trend among U.S. states to explore digital asset investment in their financial strategies.

Maryland Introduces Strategic Bitcoin Reserve Act

Maryland has followed suit with other states considering digital asset investments by introducing the Strategic Bitcoin Reserve Act. The bill seeks to create a Bitcoin reserve fund that would serve as a financial asset for the state.

If passed, the legislation would permit the state treasurer to invest funds obtained from enforcing gambling violations into Bitcoin.

The proposal aligns with similar efforts across the U.S., where states are evaluating Bitcoin as a potential store of value. Maryland’s move comes amid increasing discussions on the role of digital assets in government financial planning.

In a recent CoinGape report, Donald Trump’s Crypto Czar, David Sacks, stated that his team is evaluating the creation of a Strategic Bitcoin reserve. Sacks confirmed that this is one of their top priorities as they assess BTC reserve feasibility. The initiative follows Trump’s executive order to explore a national digital asset stockpile.

Expanding State-Level Interest

Several states have introduced or are actively debating Bitcoin reserve bills. At least 22 states are engaged in discussions, legislative proposals, or actual investments in digital assets. Michigan and Wisconsin have already allocated portions of their retirement funds into Bitcoin exchange-traded funds (ETFs).

The increasing interest in Bitcoin reserves has gained momentum following federal discussions on cryptocurrency policy. While no federal legislation has been enacted, state-level initiatives continue to progress.

Earlier this week, New Mexico introduced Senate Bill 57 (SB57) to establish a Strategic Bitcoin Reserve. The bill, proposed by Senator Ant Thornton, seeks to allocate 5% of public funds to Bitcoin as an alternative investment. The reserve would be managed by the State Investment Officer under the State Investment Council’s oversight.

Utah Advances Digital Assets Bill

Utah’s legislative efforts toward digital asset investments have reached a new stage. The state’s House of Representatives recently passed a bill allowing the state treasurer to invest in select cryptocurrencies. The bill now moves to the Senate for further approval.

If enacted, the law would permit investments in stablecoins and cryptocurrencies with a market capitalization exceeding $500 billion. As of now, Bitcoin is the only digital asset that meets this threshold. The bill’s passage through the House indicates growing legislative support for cryptocurrency investment strategies.

In addition, Kentucky has entered the digital asset landscape with a newly introduced bill. The proposal, KY HB376, would allow the State Investment Commission to allocate up to 10% of excess state reserves into Bitcoin and other digital assets.

Kentucky joins other states considering similar measures to diversify their financial holdings. The proposal also introduces provisions restricting the use of central bank digital currencies (CBDCs) within the state.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

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