Home » Crypto legislation expands as nine US states propose new bills

Crypto legislation expands as nine US states propose new bills

by baghdaddiary.com

U.S. states are ramping up their legislative focus on cryptocurrency, with four states introducing new bills related to digital assets this week alone. This development brings the total number of states considering crypto-related legislation in February to nine, highlighting an increasing state-level engagement with blockchain technology and digital asset regulation. In North Carolina, a bill introduced on February 10 aims to permit the state treasurer to invest public funds in cryptocurrency via exchange-traded products (ETPs).

Crypto legislation expands as nine US states propose new bills

The NC Digital Assets Investments Act, introduced by House Speaker Destin Hall, would enable investments in crypto-backed financial instruments with a market capitalization of at least $750 billion over the previous year. However, direct state investment in cryptocurrencies remains off the table. Hall emphasized that such a move aligns North Carolina with broader technological trends and strengthens its leadership in financial innovation.

The bill has passed its first reading and is under review by the Committee on Commerce and Economic Development. Michigan followed with a proposal on February 13 to establish a state-backed crypto reserve. Introduced by Representatives Bryan Posthumus and Ron Robinson, the bill would allow Michigan’s state treasurer to allocate up to 10% of available investment funds into cryptocurrency. The legislation, making Michigan the 20th state to explore a crypto reserve, also permits the lending of digital assets if deemed financially prudent.

Posthumus has also advocated for a state-backed stablecoin, tentatively named “MichCoin,” backed by gold and silver. Both proposals remain in committee discussions. Meanwhile, in New York, state senators have introduced a bill calling for the formation of a cryptocurrency task force. The 17-member panel would analyze the impact of digital currencies, including their environmental effects and regulatory positioning compared to other states.

Findings would be presented to state leadership by December 15, 2027. New York’s strict BitLicense regulations, which have been criticized for stifling innovation, are also under scrutiny. Mayor Eric Adams has urged lawmakers to reconsider the restrictive framework to maintain the state’s financial competitiveness. Texas, a long-standing crypto hub, has revised its Bitcoin reserve bill to potentially include additional cryptocurrencies.

The new bill, filed on February 12, removes the previous $500 million cap on state crypto investments while imposing a market capitalization threshold of $500 billion for any digital asset included in the reserve. Currently, only Bitcoin meets this criterion. Texas lawmakers, including Senator Charles Schwertner, view the bill as a high-priority legislative measure. The surge in crypto-focused legislation reflects a broader trend of states positioning themselves as leaders in digital asset adoption.

In addition to North Carolina, Michigan, New York, and Texas, states such as Florida, Utah, Ohio, Missouri, and Kentucky have introduced similar proposals this month, either to establish Bitcoin reserves or to facilitate crypto market investments. However, legislative success remains uncertain, as previous efforts to create state-backed Bitcoin reserves were rejected in North Dakota and Wyoming, the latter being a historically pro-crypto state. With federal lawmakers also considering new cryptocurrency regulations, state-level initiatives could gain clearer direction if nationwide standards are established. – By CryptoWire News Desk.

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