Bitcoin Reserve bill introduced in New Mexico, proposing 5% public fund allocation to BTC

New Mexico has become the latest US state to explore the establishment of a strategic Bitcoin reserve.

The state legislature has introduced Senate Bill 57 (SB57), titled the “Strategic Bitcoin Reserve Act,” which proposes allocating 5% of public funds to Bitcoin.

The bill was presented by Senator Ant Thornton.

The proposed legislation aims to create an alternative treasury for New Mexico, diversifying the state’s investments by including Bitcoin alongside traditional assets like stocks and bonds.

The 5% allocation is intended to capitalize on Bitcoin’s potential long-term value appreciation.

Under the proposed framework, the State Investment Officer would oversee the Bitcoin reserve, with guidance and oversight from the State Investment Council. The bill also highlights the use of cold storage to securely hold the state’s Bitcoin assets.

Senator Thornton stated that this initiative would not only diversify New Mexico’s investment portfolio but also position the state as an innovator within the rapidly expanding cryptocurrency sector.

He also emphasized potential economic benefits, including attracting cryptocurrency businesses to the region and boosting the local economy.

The bill further includes measures for transparency and public reporting to enhance accountability.

Other US states pursuing Bitcoin reserves

New Mexico is not alone in considering such a move. Indiana, for example, is seeking Bitcoin ETF exposure for its state retirement funds through a bill introduced by Representative Jake Teshka in late January.

Just last month, Illinois took a step forward in embracing cryptocurrency with the advancement of a Bitcoin strategic reserve bill.

The legislation, House Bill 1844, introduced by State Representative John Cabello, would allow the state to hold Bitcoin as part of its reserves.

The bill was referred to the Rules Committee on January 29 for further review before it moves toward potential approval by lawmakers.

Similarly, Utah and other states have proposed legislation to incorporate Bitcoin into their financial strategies.

In total, around 15 US states have introduced Bitcoin-related bills, reflecting growing interest in cryptocurrency adoption.

These moves align with the Federal Government’s broader digital asset stockpile plan.

David Sacks, the Crypto & AI Czar, recently confirmed that the government is evaluating a proposal to establish a national Bitcoin reserve, though details and timelines remain uncertain.

Potential Impact on Bitcoin

The growing interest from US states in adding Bitcoin to their portfolios is expected to influence its market dynamics.

Currently, Bitcoin is trading at $97,240.13, reflecting a 0.6% decrease in the past 24 hours. Its 24-hour low and high stand at $96,301.67 and $99,113.20, respectively.

If proposals like those from Utah and New Mexico are approved and public funds are invested in Bitcoin, analysts anticipate a rise in the asset’s market cap.

Such moves could not only drive prices higher but also contribute to reducing the volatility often associated with Bitcoin.