Senator Cynthia Lummis, one of the key advocates of Bitcoin in the US government, believes that state governments will create Bitcoin reserves before the federal government takes similar action.
Speaking at a crypto conference hosted by Anthony Pompliano in New York, Lummis said states are serving as “innovation incubators” and are more agile in adopting new financial strategies.
“I bet you’ll see a state have a Bitcoin strategic reserve before the federal government does,” Lummis said. Pointing to global trends, Lummis noted that the United Arab Emirates has already started buying Bitcoin and sovereign wealth funds around the world are moving forward with similar investments.
The concept of a national bitcoin reserve was first floated by Lummis and former President Donald Trump during an industry conference in Nashville last July. Trump then signed an executive order in January instructing agencies to evaluate the feasibility of a stockpile of the digital asset rather than committing to bitcoin as the basis for a national reserve.
Lummis suggested that some aspects of the initiative could move forward without formal congressional approval. “There is a possibility that some of these could be launched without legislative authorization,” he said. “We’ll see what the White House thinks about that and then hopefully strengthen that.”
While some state lawmakers have explored the idea of holding Bitcoin in state reserves, progress has been slow. Bills proposing state-level crypto reserves have been introduced in 24 states, according to Bitcoin Laws, but efforts in several states have stalled recently. Last month, lawmakers in Montana, North Dakota, South Dakota, and Wyoming voted against measures that would create such reserves, citing concerns about volatility and financial risk.
Even in Lummis’ home state of Wyoming, a proposal to allow the government to invest in Bitcoin failed in the state legislature in early February, with only one representative voting in favor.
Lummis’ Senate bill would have the U.S. acquire 1 million Bitcoins as part of a strategic reserve, while Trump’s original proposal sought to maintain control over the roughly 200,000 Bitcoins already in government hands due to asset seizures.
“We don’t have enough House and Senate members who are knowledgeable enough to have the comfort level to do that yet,” Lummis said. “That’s where you can come in. Talk to your senators and representatives. Help them understand that Bitcoin is digital gold,” Lummis said, urging Bitcoin advocates to educate lawmakers.
*This is not investment advice.
