Maryland Proposes Strategic Bitcoin Reserve Fund Amid Rising State-Level Crypto Interest

• The state aims to allocate gambling violation funds into Bitcoin, integrating digital assets into its financial strategy.
• At least 22 states, including Michigan, Wisconsin, and New Mexico, are evaluating Bitcoin’s role in financial planning.
• Utah moves forward with cryptocurrency investment plans, while Kentucky proposes allocating excess reserves into Bitcoin.

Maryland’s state legislature has proposed creating a Bitcoin reserve fund, thus following the same path as other states in investing in digital assets. Among them is the “Strategic Bitcoin Reserve Act of Maryland” initiated by delegate Caylin Young, which states that Maryland state funds generated through gambling violations should be invested in Bitcoin (BTC). If approved, the measure would authorize the state treasurer to manage these funds in Bitcoin as part of Maryland’s financial strategy.

Maryland’s Bitcoin Reserve Initiative

The proposed bill aims to establish a Bitcoin reserve fund that would serve as a financial asset for the state. Funds collected from gambling violations would be redirected into Bitcoin, creating a potential store of value within Maryland’s financial system. The initiative aligns with broader efforts across the U.S. as states examine Bitcoin’s role in state-level financial planning.

Several states have initiated discussions or proposed legislation on Bitcoin reserves. Michigan and Wisconsin have already allocated portions of their retirement funds into Bitcoin exchange-traded funds (ETFs). At least 22 states are currently evaluating Bitcoin’s potential in state financial planning.

In New Mexico, Senate Bill 57 (SB57) was recently introduced to establish a Strategic Bitcoin Reserve. Proposed by Senator Ant Thornton, the bill aims to allocate 5% of public funds into Bitcoin under the State Investment Council’s oversight.

Utah and Kentucky Advance Digital Asset Bills

The state’s House of Representatives adopted a bill to legalize cryptocurrency investment by the state treasurer. Currently, the bill awaits Senate approval and opens up investment in digital assets, provided such an asset has a market capitalization of over $500 billion, with only Bitcoin fitting this description to the letter.
Kentucky has also entered the digital asset space with KY HB376. The bill proposes allowing the State Investment Commission to allocate up to 10% of excess reserves into Bitcoin and other digital assets. Additionally, it introduces provisions limiting the use of central bank digital currencies (CBDCs) within the state.