The legislators of Maryland, Iowa and Kentucky have introduced legislation proposing the creation of Bitcoin Strategic Reserves (BTC) in their respective states.
TThe last bills bear the number of American states by considering Bitcoin reserves at 17. The proposals aim to integrate bitcoin into state financial strategies.
The Kentucky House Bill 376, presented by the representative TJ Roberts, aims to revise state financial practices by expanding investment options for excess funds.
The bill changes the regulations governing the State Investment Commission and authorizes investments in various asset classes, including digital assets, the obligations supported by the US government and the guaranteed deposit certificates.
Digital assets must have a market capitalization of at least $ 750 billion, on average in the previous calendar year. Only Bitcoin meets this requirement in February 2025, while Ethereum (ETH) does not do so because of its market capitalization of $ 320.6 billion.
The bill stipulates that the investment cannot exceed 10% of the total surplus cash of the State fund. It allows State agencies accept payments in digital assets and ingots while prohibiting the use of digital currencies from the Central Bank (CBDC). In addition, the legislation will allow state pension funds and deferred remuneration plans to invest in negotiated products on the stock market.
The bill establishes a framework to manage the revenues of digital assets, guaranteeing the conversion to American currency if necessary. State agencies are authorized to promulgate regulations supervising these investments.
Maryland and Iowa join the Bitcoin race
Bill 1389 of the Maryland Chamber, presented by representative Caylin Young, proposes the creation of Maryland Bitcoin Reserve Fund.
This initiative would position Bitcoin as a reserve asset for the State. The legislation grants the state of the treasurer of the State to invest funds obtained by applying certain game violations in Bitcoin, which makes it a unique approach to the accumulation of digital assets.
Meanwhile, File 246 of Iowa, presented by representative Taylor Collins, describes the investment allowances for the state treasurer.
The bill authorizes investments in precious metals and digital assets with market capitalization exceeding $ 750 billion, on average during the previous calendar year. It also allows investments in stablecoins.
The General State Fund, the Cash Reserve Fund and the Iowa economic emergency fund are eligible for making such investments. The bill caps investments in digital assets at 5% of public funds available at the time of investment.
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