Kentucky has become the latest US state to propose legislation establishing a Bitcoin reserve, joining a growing trend across the country. Introduced on February 15, 2023, by State Representative Theodore Joseph Roberts, the bill, titled HB376, would allow the State Investment Commission to allocate up to 10% of excess state reserves into cryptocurrencies.
The bill defines eligible digital assets as having a market capitalization exceeding $750 billion and not being a stablecoin, effectively targeting Bitcoin (BTC) as the only cryptocurrency meeting these criteria. Currently, BTC boasts a market capitalization of over $1.9 trillion, while the second-largest cryptocurrency, Ethereum (ETH), has a market cap of approximately $334 billion.
While Kentucky's proposal is the 16th such initiative in the US, none have been implemented yet. Wyoming's WYHB201 bill failed a committee vote, and North Dakota's ND HB1184 bill was rejected by the House. Utah's HB230 bill, however, has successfully passed the House and is awaiting Senate approval, marking the first Bitcoin reserve bill to clear a chamber vote.
This trend reflects a broader global movement towards strategic Bitcoin reserves, as evidenced by US Crypto Czar David Sacks' recent statement that the federal government is exploring a national BTC reserve. Brazil is also considering adding BTC to its National Treasury. El Salvador and Bhutan have already accumulated significant Bitcoin reserves.
At press time, BTC trades at $99,620, up 1.5% in the past 24 hours.