📢 Bitcoin Reserves in the US: State and Federal Proposals Explained 🌍
Three U.S. states—Texas, Ohio, and Pennsylvania—are working to create state-level Bitcoin reserves. But what are these bills, and how do they differ from the federal Bitcoin Reserve proposal? Let's dive in! 🧵👇
📌 Federal Reserve Proposal
Introduced by Sen. Cynthia Lummis in July 2024.
Known as the BITCOIN Act, it aims to:
🔹 Purchase 1M BTC (5% of total supply).
🔹 Use BTC to pay down national debt.
🔹 Build a U.S. Treasury-controlled decentralized Bitcoin vault network.Lummis compares this to a "Louisiana Purchase moment."
📌 State-Level Bills
States like Texas, Ohio, and Pennsylvania propose smaller, localized reserves.
Unlike the federal bill, these focus on:
🔹 Hedging against USD inflation.
🔹 Accumulating BTC through taxes and donations in crypto.
🔹 BTC storage with a 5-year embargo in Texas.
📌 Why is this happening now?
Inflation and economic instability are major factors.
Bitcoin is viewed as a hedge and store of value by some states.
📌 Will these bills pass?
Odds are slim—historically, only ~20% of state-level bills become law.
Texas is optimistic due to its crypto-friendly policies and strong mining incentives.
🔮 Future Outlook
Whether at the state or federal level, these bills highlight America’s growing focus on Bitcoin adoption. A new wave of innovation or a potential challenge to the dollar’s dominance? Time will tell.
👉 What do you think about this bold move? Let’s discuss! 💬
🔗 Full thread and source details here.