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North Carolina Invests 10% of Public Money in Bitcoin

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  • North Carolina has introduced the Bitcoin Reserve and Investment Act (SB327) which would allocate up to 10% of its $9.5 billion public funds into Bitcoin, pending approval.
  • The Bitcoin holdings will be stored in multi-signature cold storage for added security, with monthly checks to verify the security of the reserve. 

North Carolina has made a very significant move in the crypto space by creating the Bitcoin Reserve and Investment Act (SB327).

The bill, which was finalized in March 2025, lets the state put up to 10% of its budget into Bitcoin. With $9.5 billion in public funds, this decision could reshape how money is managed within the state. 

If the bill is approved, North Carolina could become one of the major leaders in using cryptocurrencies for public investment, and this move would encourage others to follow. 

The meeting that brought about the approval of this bill was led by two Republican Senators, Todd Johnson and Brad Overcash. The plan shows the states growing interest in blockchain-based finance. The state has two Bitcoin reserve proposals awaiting approval in the House and Senate. 

To protect the state’s assets, Bitcoin will be kept in a multi-signature cold storage for more added security. There would be a regular monthly check to confirm reserves and keep all the records clear. Lawmakers believe putting part of the budget into cryptocurrency could strengthen investments and boost returns. 

North Carolina’s Bitcoin Reserve Strategy and Risk Measures

The bill also states that BTC can only be sold during a major financial crisis and under strict rules. This would help ensure it remains an asset that is held for the long term and only used during urgent situations. 

Large companies and governments have continuously shown interest in crypto assets as a way to protect wealth and reduce risks tied to traditional finance, such as inflation. The cryptocurrency and Bitcoin’s price swings and uncertain rules create challenges alongside room for possible gains and growth.

The bill aims to balance the benefits of holding BTC with the need for strong protection and oversight, offering a model for others to consider.

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Texas Proposes Second Bill for $250M Bitcoin Investment Reserve

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  • Texas has introduced House Bill 4258, which would allow the state comptroller to invest up to $250 million from the Economic Stabilization Fund
  • This Bill follows the Senate Bill 778 and aligns with a growing national trend of U.S. states considering Bitcoin reserves to help protect against inflation 

Texas lawmakers have put forward another Bitcoin reserve bill, giving the state’s chief accountant and financial regulator the power to invest as much as $250 million in digital assets. 

Senate bill HB 4258 would authorize the official overseeing state finances to allocate funds into Bitcoin or other cryptocurrencies.

Texas Advances Bitcoin Investment Strategy 

Texas has introduced a new House Bill 4258 on the 11th March 2025, the proposed bill would allow the state comptroller (Senior Finance Executive) to invest up to $250 million from the Economic Stabilization Fund into Bitcoin or any other cryptocurrencies. 

This initiative follows the Senate Bill 778 that was previously passed by the Senate and is currently under House review. HB 4258 would also give local governments like municipalities and counties the opportunity to allocate up to $10 million of their funds into digital assets. 

These legislative efforts seen in the House align with a broader national trend, as different states in the  U.S. explore the establishment of Bitcoin reserves to help hedge against inflation and also bring about the diversification of investment portfolios. So Texas with its significant cryptocurrency mining operations, is also positioning itself as a leader in this emerging financial landscape.

Earlier in the Month, the Texas Senate approved the Bitcoin strategic reserve bill, SB-21, after discussions led by State Senator Charles Schwertner. 

He emphasized that adding a scarce and valuable asset like Bitcoin would help strengthen the state’s financial position. If enacted, Texas would become the first in the U.S. to establish a digital asset reserve. However, the bill still requires the governor’s approval to become law.

According to The Bitcoin Reserve Monitor it reports there are at least 21 U.S. states exploring the idea of creating strategic cryptocurrency reserves. These states are at various points in their approval process, with about 19 awaiting decisions, two still reviewing proposals, and another five having already dismissed similar initiatives.

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Standard Chartered Recommends Budget-Neutral Approach for U.S. Bitcoin Reserve via Gold Sale

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  • Standard Chartered suggests selling U.S. gold reserves to fund Bitcoin acquisitions.
  • The U.S. holds $758B in gold, which could be used for a budget-neutral Bitcoin reserve.
  • The Treasury’s $39B Exchange Stabilization Fund is another option for Bitcoin purchases.

Standard Chartered has proposed that the U.S. government could retrieve funding for its newly launched Strategic Bitcoin Reserve (SBR) by selling part of its current gold reserves without increasing financial strain on taxpayers. According to bank declarations this method constitutes “budget-neutral” because it prevents financial strain on taxpayers while expanding national Bitcoin control.

The proposal follows President Donald Trump’s recent signing of an executive order creating the SBR. The new directive mandates that all future Bitcoin acquisitions for the reserve must follow budget-neutral strategies. Standard Chartered’s Geoff Kendrick highlights that selling gold, which is currently valued at approximately $758 billion, could provide the necessary funds without affecting the federal budget.

Gold Reserves and Bitcoin Acquisitions

The U.S. government maintains an extensive reserve of gold totalling 8,133.46 tons which is vital to Kendrick’s plan. The government wants to increase its digital asset portfolio through Bitcoin purchases by utilizing its existing gold reserves as a funding source.

Standard Chartered suggests using government gold reserves to purchase Bitcoin while avoiding new expenditures. Standard Chartered proposes to execute these purchases through the existing financial framework without creating new budgetary requirements.

The U.S. government’s gold reserves are one of its most valuable assets, but in times of economic uncertainty, they may become a source of funding for Bitcoin investments. Kendrick explained that this shift would represent a substantial departure from standard gold-centered strategies yet proved advantageous since Bitcoin currently commands global attention.

The cryptocurrency’s value ranged between $94,770 and $82,681 within seven days, according to CoinGecko. At present, Bitcoin is trading at $85,925, showing less than a 1% increase over the past week.

image 43
source; TRADINGVIEW

Potential Alternatives for Funding Bitcoin Reserve Purchases

Kendrick showed interest in alternative funding strategies to acquire Bitcoin, including utilizing resources from the Treasury Exchange Stabilization Fund (ESF). With a $39 billion fund stabilizes the U.S. dollar when traded in foreign currency markets. Using the ESF funds to acquire Bitcoin would represent an unexpected budgetary decision but could enable the government to achieve its Bitcoin targets through current fiscal resources.

The Bitcoin Act of 2024 is proposed legislation suggesting the U.S. Treasury should buy Bitcoin over a five-year period. If approved the bill would establish a budget-neutral framework for acquiring Bitcoin Reserve while adhering to governing budget regulations.

Data from the US Treasury shows that the department currently holds over 258.6 million troy ounces of gold, valued at over $10.9 billion as of Feb. 28. The Treasury’s convertible foreign currency reserves, as of Jan. 31, total over $35 billion.

image 44 3
Source: US Treasury

The proposed strategic approaches encounter multiple barriers that prevent their easy execution. Some proposed solutions require U.S. government approval from Congress because they involve gold sales or ESF utilization for Bitcoin Reserve procurements. Barriers exist that might hold up both the Strategic Bitcoin Reserve’s deployment and its acquisition plans.

Trump Just Made a Huge Bitcoin Move: Why Isn’t BTC Skyrocketing?

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  • Trump’s Bitcoin reserve plan sparks debate, but prices remain stagnant amid market uncertainty.
  • The U.S. now holds 200,000 Bitcoin, pressuring other nations to follow its lead.
  • Rumors of zero capital gains tax on Bitcoin could turn the U.S. into a crypto investment hub.

Donald Trump has signed an executive order to create a strategic Bitcoin reserve and a digital asset stockpile. This decision has caused much debate as it affects the crypto space. This leaves many investors and analysts wondering what it all means for the growth of Bitcoin and why the prices have not risen more.  

According to the executive order, Bitcoin is split into two categories. The strategic Bitcoin reserve will help the U.S Treasury to have a tax legislation plan on how it can obtain BTC. On the other hand, the national digital asset stockpile will be used for storing BTC and other digital assets found in criminal and civil cases. The government will refrain from purchasing new BTC for the purpose of building up the stock; it will only possess the stock that it has acquired from the owners.  

Currently, the United States alone possesses over 200,000 BTC, which ranks this nation among the largest BTC owners. This could act as a factor that compels other counties to follow this decision. If the U.S. decides to hold Bitcoin stocks, other countries such as China may also feel pressured to do the same.  

Bitcoin as Digital Gold

Under the new policy, however, the White House compared Bitcoins to digital gold. This strategy gives officials advantage of being the first country to build a Bitcoin reserve. Crypto-friendly Senator Cynthia Lummis also referred to the action as the start. She also said that there could be more announcements at a later date in the next several months.  

However, the price of BTC has not gone up to 200,000 and above as the news might have people believe. This kind of policy change was expected to boost the price after the value crossed such an important figure. Nevertheless, there is still some doubt regarding timing and in what form the United States will start acquiring BTC . 

Another reason that may have an impact on Bitcoin price is rumors that it is not to be taxed on capital gains on Bitcoin. Before Crypto White House Summit, it is expected that Trump will sign more executive orders. The United States could become a hotspot for crypto investment if he rescinds the capital gains tax. This can lead to a great disturbance in the flow of the market and its interaction with the companies involved.  

Bitcoin’s Market Consolidation

Currently the price action itself has fallen into a consolidation channel. On the four-hour time frame, a symmetrical triangle forming for the BTC price. This level’s breach defined the further direction of the main trend in most cases, and this situation seems to remain the same. Past experiences suggest the same occurrence results in more gains when the bulls are dominant in the market.  

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Source: TradingView

In the 24-hour charts, BTC is seen to be trading above essential support levels. Hence, buyers have intervened at the lower end of price range in order to check further erosion. If this consolidation persists and prolongs, then the bounce back can be much stronger at some point in time. Pundits say that BTC may reach new record highs should the coin climb above the levels of resistance.  

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Source: TradingView

El Salvador was the first country to make use of BTC legal tender, and now, it is the U.S turn as well. If more countries are obtaining it, demand will increase, which might lead to the occurrence of a supply shock, and hence higher prices.  

AVAX at a Crossroad: Key Support Levels and Macro Factors Could Define Its Path

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  • AVAX has dropped 4% in the last 24 hours, currently priced at $20.67, amid broader market volatility.
  • Analysts are watching key support levels, which may signal a potential recovery if they hold.
  • AVAX is testing Fibonacci retracement levels, with a possible bullish reversal if the support zone holds.
  • Macro factors like upcoming jobs data and the Fed’s speech could further impact AVAX’s price movement.

Avalanche (AVAX) is currently experiencing heightened volatility, triggered by a significant sell-off in the cryptocurrency market. In the last 24 hours, the price of AVAX has dropped by 4%, with its current price standing at $20.67. Despite the short-term decline, experts are eyeing key support levels that could signal a potential recovery in the coming weeks.

AVAX 1D graph coinmarketcap
AVAX at a Crossroad: Key Support Levels and Macro Factors Could Define Its Path 7

Market Conditions and Bitcoin’s Impact on Avalanche

The recent market downturn in AVAX comes on the heels of a brief sell-off in Bitcoin (BTC), which occurred after traders digested the U.S. government’s Bitcoin Reserve plan. While Bitcoin initially saw a decline, the cryptocurrency quickly rebounded by 4% within a matter of hours. This market behavior underscores the current volatility, where sudden news events trigger panic selling, but the underlying market strength often leads to price recoveries.

As a result of the panic selling, Avalanche has experienced a drop in value, but the price action remains resilient. Analysts note that with excessive short positions at sub-$85K, a bounce-back in prices was likely, given the overall market strength.

Key Support Zone for AVAX: A Potential Bullish Reversal

Looking at the technical analysis of Avalanche, the cryptocurrency is currently testing a crucial support zone, aligning with Fibonacci retracement levels. This is an important signal for traders, suggesting that a bullish reversal could be on the horizon if the support level holds.

According to Rose Premium Signal analysis, AVAX is poised for a strong recovery if the current support zone holds. With potential price targets in the medium term ranging from $43.84 to $80.03, the outlook for AVAX remains optimistic. A weekly close above $30 could further accelerate this bullish momentum.

image 40 9
AVAX at a Crossroad: Key Support Levels and Macro Factors Could Define Its Path 8

Macro Factors to Watch: Jobs Data and Fed’s Speech

While AVAX’s price movements are largely driven by technical indicators, broader macroeconomic factors will play a significant role in shaping the market’s direction. The upcoming jobs data release and Federal Reserve Chairman Jerome Powell’s speech are expected to bring more volatility to the market. These factors could affect investor sentiment and, in turn, influence cryptocurrency prices, including AVAX.

While Avalanche (AVAX) is facing short-term volatility due to the broader market sell-off, the technical outlook remains positive. Key support zones are in play, and if these levels hold, a bullish reversal could be in store for the cryptocurrency. Traders will need to monitor the $30 level closely, as a weekly close above this price could signal the start of a more sustained rally.

With the broader market influenced by macroeconomic factors like jobs data and the Federal Reserve’s upcoming speech, AVAX’s future price movement will depend not only on technical levels but also on how the overall market reacts to these events.

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Trump’s Strategic Bitcoin Reserve Slashes $18 Billion of Sell-Side Pressure

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  • Trump’s Strategic Bitcoin Reserve could eliminate $18 billion in sell-side pressure on BTC.
  • Under the new policy, the U.S. government holds 198,109 BTC, valued at around $17 billion.
  • After the announcement, BTC dropped 6% to $84,864, disappointing market expectations.

U.S. President Donald Trump has signed an executive order to establish a Strategic Bitcoin Reserve, aiming to retain confiscated Bitcoin rather than sell it. Coinbase executive Conor Grogan estimated that this move would remove approximately $18 billion in sell-side pressure, potentially significantly impacting Bitcoin’s market dynamics.

U.S. Government’s Bitcoin Holdings and Strategy

According to Arkham Intelligence, the U.S. government holds around 198,109 BTC, 122 million USDT, and 56,035 ETH. On Thursday, Trump signed an executive order to establish a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile, as White House AI and Crypto Czar David Sacks stated.

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Source: X

Sacks highlighted that the government had previously sold around 195,000 BTC for just $366 million over the last decade. The executive order mandates a full audit of the government’s BTC holdings and empowers the Treasury and Commerce Departments to explore budget-neutral strategies for acquiring additional BTC.

Trump’s stance on cryptocurrency has drastically shifted from skepticism to full support. Once dismissing Bitcoin as a potential scam, he embraces it, gaining backing from industry leaders frustrated with the previous administration’s regulatory stance. His campaign included promises such as promoting industry-friendly legislation and scaling back SEC enforcement actions against major crypto firms.

Bitcoin and Major Cryptos Face Declines After Announcement

Despite the significant policy shift, Bitcoin and other major cryptocurrencies declined following the announcement. BTC dropped 6% to $84,864.3, reflecting market disappointment over the lack of government-funded crypto purchases. Other major cryptocurrencies, including Ether, Solana, Cardano, and XRP, also experienced declines ranging from 3.7% to 14%.

Sacks clarified that the reserve will be funded solely by BTC seized in criminal and civil asset forfeiture cases. The Department of Justice holds around 200,000 BTC, valued at over $17 billion. Previously, these assets were periodically liquidated through Coinbase partnerships. However, future government sales have been halted under the new policy.

Market analysts speculate that while the reserve prevents further BTC sales, it does not create new demand, leading to limited immediate price benefits. The hope that Trump might push Congress to authorize direct BTC purchases remains unfulfilled. Consequently, Bitcoin dropped 4.6% in 24 hours, trading at $87,373 at the time of writing.

BTCUSD 2025 03 07 07 57 19
Source: Tradingview

BTC remains the leading cryptocurrency, with a total market capitalization of approximately $1.7 trillion. Initially created in response to the 2008 financial crisis, BTC has evolved into a digital asset widely regarded as a hedge against inflation. Supporters argue that a strategic BTC reserve could strengthen the U.S. economy and contribute to debt reduction over time.

Read More: White House Confirms Bitcoin Reserve Plan Under Trump’s Order

White House Confirms Bitcoin Reserve Plan Under Trump’s Order

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Key Takeaways:

  • The U.S. government establishes a Strategic Bitcoin Reserve using forfeited assets.
  • The Reserve aims to prevent taxpayer losses and maintain Bitcoin as a store of value.
  • A Digital Asset Stockpile will manage seized crypto assets beyond Bitcoin.

US President Donald Trump just signed an Executive Order to create a Strategic Bitcoin Reserve, a radical shift in US government policy towards cryptocurrencies.

It will be built using seized BTC received through criminal or civil forfeitures at no taxpayer cost. This move places Bitcoin as a store of value in the long term and ensures that digital assets held by the government will be kept strategically and not be cashed in prematurely.

Estimates place federal holdings at approximately 200,000 BTC, even though a full audit has never been conducted. The Executive Order demands a full review to determine the actual holdings.

The decision to hold back and not to sell it comes in an attempt to correct previous mistakes that resulted in massive financial losses. It’s reported that previous sales of BTC have resulted in it losing a combined value amounting to $17 billion, and it’s apparent that a new strategy is needed.

U.S. Digital Asset Stockpile Initiative

Along with a Reserve for Bitcoin, the order establishes a U.S. Digital Asset Stockpile to manage other cryptocurrencies that have been seized.

This stockpile, to be administered by the Treasury Department, will consist entirely of digital assets obtained through legal forfeitures. No new assets will be bought in addition to those seized, and therefore, the initiative will be budget-neutral.

The government has also ordered Secretaries of Treasury and Commerce to explore means to buy more BTC without making American taxpayers bear extra cost. The move fits into a broader strategy to integrate digital assets into national financial planning with robust regulation.

U.S. Bitcoin Acquisition Strategy May Yield Trillions in Returns

On March 5, Michael Saylor, co-founder of MicroStrategy and a long-time Bitcoin advocate, has emphasized the significance of establishing a strategic Bitcoin reserve. According to him, Bitcoin represents more than just an asset; it serves as a decentralized financial network that could secure the U.S. economy in a rapidly evolving digital landscape.

Saylor has compared the initiative to such historic purchases like the Louisiana Purchase and the purchase of gold reserves, which previously have returned enormous amounts to the country.

The U.S. could transform the global financial system by making it a leader in the cryptocurrency space. Experts in the industry believe that purchasing as much as 1 million Bitcoins in the next five years would unlock tremendous economic value and could return trillions.

It would cement U.S. financial dominance and prevent foreign nations, such as China, from taking control of the digital currency arena.

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New Hampshire Bitcoin Bill Passes With Overwhelming 16-1 Vote

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  • New Hampshire’s Housе Commеrcе Committее аpprovеd Housе Bill 302 with а 16-1 votе on Mаrch 5.
  • Thе bill аllows up to 5% of stаtе funds to bе invеstеd in Bitcoin аnd gold.
  • Bitcoin quаlifiеs аs thе only digitаl аssеt mееting thе bill’s $500 billion mаrkеt cаp rulе.

New Hampshire’s House Commerce аnd Consumer Affairs Committee ovеrwhеlmingly аpprovеd House Bill 302 with а 16-1 votе on Mаrch 5. Thе bill, dеsignеd to аllow thе stаtе’s trеаsurеr to invеst public funds in Bitcoin аnd othеr sеlеct аssеts, is now hеаdеd for а full Housе votе.

Introducеd by Rеpublicаn Kеith Ammon on Jаnuаry 10, thе bill hаs bipаrtisаn support with co-sponsors, including Dеmocrаts Chris McAlееr аnd Cаrry Spiеr. With thе bill аdvаncing to thе Housе for а finаl votе, New Hampshire joins а wаvе of stаtеs considеring similаr lеgislаtion. North Cаrolinа, Oklаhomа, аnd Tеxаs аrе аlso аwаiting full Housе votеs, whilе Utаh аnd Arizonа hаvе аlrеаdy pаssеd compаrаblе bills.

Thе bill initiаlly suggеstеd аllowing thе trеаsurеr to аllocаtе up to 10% of sеlеct funds into digitаl аssеts аnd prеcious mеtаls. Howеvеr, following аmеndmеnts, thаt figurе wаs lowеrеd to 5%. If pаssеd, New Hampshire’s trеаsurеr could invеst from thе gеnеrаl fund, thе rеvеnuе stаbilizаtion fund, or othеr stаtе-controllеd funds.

Bitcoin Meets Investment Criteria Alone

Although thе bill doеs not еxplicitly nаmе Bitcoin, it limits invеstmеnt options to digitаl аssеts with аn аvеrаgе mаrkеt cаpitаlizаtion of аt lеаst $500 billion ovеr thе pаst yеаr. Currеntly, Bitcoin is thе only cryptocurrеncy thаt mееts thаt rеquirеmеnt. Any digitаl аssеts аcquirеd must bе hеld by а quаlifiеd custodiаn or structurеd аs аn еxchаngе-trаdеd product.

New Hampshire’s trеаsurеr, Monicа Mеzzаpеllе, hаs shown intеrеst in utilizing thаt invеstmеnt аuthority if thе bill is еnаctеd. In а Mаrch 5 committее sеssion, Ammon highlightеd thаt thе lеgislаtion hаd bееn аdjustеd to rеmovе stаblеcoins аnd аny potеntiаl for stаking—likеly to strеаmlinе thе bill аnd incrеаsе its chаncеs of pаssing.

Thе lеgislаtion аlso includеs provisions for invеsting in prеcious mеtаls such аs gold, silvеr, аnd plаtinum, positioning thе stаtе to hеdgе аgаinst inflаtion whilе еxploring аltеrnаtivе finаnciаl аssеts.

Bitcoin’s Growing Role in State-Level Policy

Thе movеmеnt to intеgrаtе BTC into stаtе invеstmеnt strаtеgiеs is gаining trаction nаtionwidе. Bеyond New Hampshire, multiplе stаtеs аrе now аdvаncing similаr proposаls to аllocаtе public funds towаrd digitаl аssеts. Thе growing intеrеst аt thе stаtе lеvеl coincidеs with fеdеrаl discussions аbout Bitcoin’s rolе in thе еconomy.

On Mаrch 2, Prеsidеnt Donald Trump аnnouncеd thе formаtion of а Crypto Strategic Rеserve, which would includе Bitcoin аlong with Ether, XRP, Solana, аnd Cardano. Howеvеr, thе inclusion of multiplе digitаl аssеts hаs spаrkеd dеbаtе аmong finаnciаl еxpеrts.

Bitwisе’s chiеf invеstmеnt officеr, Matt Hougan, wеighеd in on thе mаttеr, stаting, “Thе inclusion of smаll-cаp аssеts in thе аnnouncеmеnt unnеcеssаrily complicаtеd mаttеrs.” Hougаn аddеd, “Aftеr thе dust sеttlеs, I suspеct thе finаl rеsеrvе will bе nеаrly еntirеly Bitcoin, аnd it will bе lаrgеr thаn pеoplе think.”

Commеrcе Sеcrеtаry Howard Lutnick hintеd аt Bitcoin’s potеntiаl for spеciаl trеаtmеnt, rеmаrking thаt it mаy hold а uniquе stаtus within thе rеsеrvе. “Othеr crypto tokеns, I think, will bе trеаtеd diffеrеntly—positivеly, but diffеrеntly,” Lutnick аddеd.

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Montana House of Representatives Rejects $50 Million Bitcoin Reserve Plan

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  • Montana’s legislature rejected House Bill 429 in a 41-59 vote.
  • The bill aimed to allocate up to $50 million in public funds for digital assets, stablecoins, and metals, with Bitcoin as the top cryptocurrency.
  • Critics cited risks from crypto market volatility.
  • Supporters believed it could outperform traditional bonds.

Montana lawmakers have rejected HB 429, a proposal that would have allowed the state to invest in Bitcoin and other precious metals. During the latest floor session, the House voted against the bill, which would have allowed the state to hold Bitcoin as a state’s asset.

HB 429 Bitcoin Reserve Proposal And its Rejection 

The proposal aimed to establish a Bitcoin reserve for the state, this was inspired by other regions exploring cryptocurrency adoption. The goal of the proposal was to safeguard financial strength using a decentralized asset that resists inflation and central banking policies. 

It was backed by the increasing recognition of Bitcoin as a form of reliable investment, as it has gained trust from businesses and institutions. However, it failed to secure enough approval to pass into law.

The House Bill 429 was voted down by a margin of 41-59. The proposal aimed to set up a special fund that would have allowed up to $50 million to be invested in digital assets.

The bill also covered investments in stablecoins and precious metals. However, only Bitcoin qualified, as it was the only asset with a market value that exceeded $750 billion.

Representative Curtis Schomer who introduced the bill, he called it beneficial for the state treasury. He cautioned that relying only on bonds could weaken purchasing power over time and how there’s need to diversify the states reserve due to economic uncertainty and inflation. 

Supporters argued it could strengthen the state’s investments and offer better returns than bonds. Representative Lee Demming backed the idea, urging Montana to make the most of public funds. However, despite these points, the bill did not pass.

Opponents of House Bill 429, which includes the Representative Steven Kelly. He argued that the bill carried too much risk for taxpayers. Kelly emphasized that lawmakers must protect public funds and he warned that digital assets were too unstable for state investments. 

Although the bill is now defeated, any future effort to create a Bitcoin reserve would need to go through the legislative process again. Earlier, it had passed the business and labor committee on February 19 with Republican backing and Democratic resistance.

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Senate Banking Committee to Hold Key Hearing on Crypto Regulations

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  • The U.S. Senate Banking Committee will hold a hearing on bipartisan crypto regulations on February 26.
  • Lawmakers will discuss stablecoin regulations, market structure, and a potential strategic Bitcoin reserve.
  • Industry experts from Kraken and Lightspark will provide insights on regulatory clarity and innovation.

The U.S. Senate Banking Committee will hold a hearing on February 26 to discuss bipartisan crypto regulation frameworks for digital assets. The session aims to provide clear guidelines for the crypto industry amid growing regulatory concerns and stalled legislative efforts. Lawmakers will address market structure, stablecoin regulations, and the potential establishment of a strategic Bitcoin reserve.

Senate Banking Committee to Revisit Crypto Regulation

The Senate Banking Committee, led by Senator Tim Scott, will assess how regulation can foster innovation while ensuring financial stability. Industry experts from Kraken and Lightspark will provide insights on balancing oversight with economic growth. The committee aims to position the U.S. as a leader in digital finance by shaping a practical regulatory framework.

Witnesses include Lewis Cohen from Cahill Gordon & Reindel LLP, Jonathan Jachym from Kraken, and Jai Massari from Lightspark. They will discuss compliance measures and the impact of current regulatory actions on the industry. Additional speakers may be added to the panel before the hearing.

The hearing will be hybrid, allowing both in-person and virtual participation. It will be webcast live, but access will be granted only once proceedings begin. Individuals needing accessibility services must contact the committee clerk three business days in advance.

Crypto Subcommittee Formation and Leadership

The Senate Banking Committee is set to establish its first crypto subcommittee, with Senator Cynthia Lummis expected to lead. This move follows the House Financial Services Committee’s creation of a similar subcommittee in 2023. Lawmakers believe this initiative will provide more focused oversight and legislative direction for digital assets.

Senator Scott has prioritized forming the subcommittee to streamline discussions on crypto-related policies. The committee oversees financial agencies like the SEC, making this step crucial in shaping future regulations. The subcommittee’s creation signals a shift toward structured policymaking for the digital asset sector.

Lummis has actively supported pro-crypto policies and previously advocated for clearer regulatory guidelines. She recently filed an amicus brief backing Coinbase’s appeal against the SEC, challenging the agency’s authority in crypto enforcement. Her leadership in the new subcommittee may bring more clarity to regulatory discussions.

Potential Impact on U.S. Crypto Regulation

The hearing is critical for the industry, as regulatory uncertainty has slowed growth and investment. Lawmakers will discuss bipartisan solutions to establish a balanced approach that encourages innovation while protecting consumers. A well-defined framework could position the U.S. as a competitive player in the global crypto economy.

President Donald Trump’s administration has expressed support for reducing regulatory overreach in the crypto space. Lummis has backed Trump’s proposal for a strategic Bitcoin reserve, emphasizing its role in financial stability. If lawmakers align on key crypto regulations, the hearing could pave the way for a more structured regulatory landscape.