Wyoming introduces a bill to establish a Strategic Bitcoin Reserve.

This move positions Wyoming among several states exploring Bitcoin reserves as part of their financial strategies, signaling a growing trend toward cryptocurrency adoption at the state level.

Wyoming Senator Cynthia Lummis, a prominent Bitcoin advocate, expressed her support for the initiative in a Jan. 17 post on X (formerly Twitter). She applauded Wyoming Representative Jacob Wasserburger for leading the effort, stating, “Wyoming took its first bold step toward a strategic Bitcoin reserve.” Lummis emphasized that this proposal reflects Wyoming's commitment to financial innovation and diversification.

If enacted, the bill would permit the Wyoming state treasurer to allocate funds from the general fund, the Permanent Wyoming Mineral Trust Fund, and the Permanent Land Fund to Bitcoin investments, capped at a maximum of 3% per fund. 

Notably, the legislation includes a provision ensuring that if the value of Bitcoin investments exceeds this 3% threshold due to market fluctuations, the state treasurer would not be required to sell or reduce holdings to comply with the cap.

Other states, including Pennsylvania, Texas, Ohio, New Hampshire, Oklahoma, North Dakota, and Massachusetts, have also introduced similar proposals for Strategic Bitcoin Reserves, reflecting a broader shift toward recognizing Bitcoin as a strategic financial asset.

The timing of Wyoming’s proposal coincides with increased speculation about Donald Trump’s potential support for a national Strategic Bitcoin Reserve after his inauguration on Jan. 20. Betting platforms like Kalshi and Polymarket have reported rising odds of Trump advancing Bitcoin-related initiatives.

In a related development, Senator Lummis recently addressed the U.S. Marshals Service in a Jan. 15 letter, seeking clarification about the government’s plans to sell 69,370 Bitcoin seized in the Silk Road asset forfeiture. 

Lummis criticized the notion of liquidating such a significant Bitcoin holding, suggesting it could be motivated by political spite. She argued that retaining these assets could offer strategic value to the U.S., both as a hedge against economic uncertainty and as a demonstration of the government's embrace of digital innovation.

Lummis' remarks highlight a growing divide in federal and state approaches to Bitcoin, with some advocating for strategic retention while others push for liquidation. The debate underscores the broader tensions surrounding cryptocurrency’s role in public finance and policy making.