Wyoming Proposes Legislation To Allow State Funds to Invest in Bitcoin
Wyoming lawmakers have introduced House Bill 0201 (HB0201), a bill that would allow the state to invest public funds in Bitcoin. The proposal limits Bitcoin investments to 3% of qualifying state funds, including the general fund, permanent mineral trust fund, and permanent land fund.
Bitcoin as Part of Wyoming’s Financial Strategy
The bill permits the Wyoming State Treasurer to directly buy Bitcoin or use it to acquire regulated Bitcoin Exchange-Traded Products (ETPs) from registered investment companies. The initiative aims to expand the investment approach of the state and explore the possibilities of Bitcoin as an appreciating asset.
According to the sponsor of HB0201, Representative Jacob Wasserburger, the bill will help Wyoming maintain a lead in the area of financial innovation. “In the tradition of great policy-making, it is not only sensible but path-breaking for the state of Wyoming to invest in Bitcoin,” he said. The bill also provides for the security of Bitcoin investments by providing rules for the safe custody of the investments and annual performance reports.
This move comes as Wyoming leads the pack in embracing digital assets having enacted more than two dozen blockchain and crypto-friendly laws since 2018.
Wyoming’s Blockchain Leadership and National Implications
Wyoming also has a friendly legal stance toward blockchain and cryptocurrency by legal means, such as the adoption of the Special Purpose Depository Institution (SPDI) charter. This framework allowed the regulated banks in the state to engage in the handling of digital assets which made Wyoming one of the most friendly states to crypto in the United States.
The proposed Bitcoin reserve is in line with the efforts by Wyoming Senator Cynthia Lummis and President-elect Donald Trump to develop the United States Strategic Bitcoin Reserve. Lummis has previously expressed support for Bitcoin as a reserve currency saying that it has the potential of enhancing the value of the US dollar and the economy.
The Freshman Representative Wasserburger stated Wyoming’s backing of this national initiative, saying that
“accumulating strategic Bitcoin reserve is not only a matter of financial power but also establishing American supremacy in the digital economy.”
The proposed bill makes Wyoming an example for other states, including Oklahoma, which is considering its own Bitcoin reserve legislation. Oklahoma State Representative Cody Maynard introduced the Strategic Bitcoin Reserve Act this week to protect state funds while embracing innovation.
Transparency and Accountability in Bitcoin Investments
HB0201 also provides for tough measures to enhance accountability and transparency in the handling of Bitcoin investments. The state treasurer must file annual reports on the returns of Bitcoin investments, the management of assets, and the market price of the holdings. In addition, the treasurer will be empowered to make regulations to enhance the security of the investments and their efficient management.
This bill seeks to address risks by only allowing the state to invest in Bitcoin a proportion of its resources, while also testing out its viability as a sound asset. This aspect of the focus on transparency can be attributed to the state’s effort to protect public assets while embarking on sophisticated financial management.
This proposal from Wyoming is in sync with President-elect Trump’s positive view on Bitcoin and the increasing adoption of Bitcoin, XRP, SOL, and USDC as reserve currencies. Trump’s campaign emphasized positioning the U.S. as a global cryptocurrency leader, and his victory spurred optimism in the crypto market with Bitcoin hitting an all-time high.
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