- New Mexico proposed allocating 5% of public funds to Bitcoin, joining 15 U.S. states advancing BTC reserve bills.
- Arizona’s BTC reserve bill reached a general vote; Wyoming and North Dakota scrapped similar proposals.
New Mexico joined 15 U.S. states advancing legislation to allocate public funds to Bitcoin. State Senator Anthony Thornton filed Senate Bill 275 on February 4, authorizing a 5% cap on BTC purchases from state reserves. The proposal now undergoes review by the Senate Taxation, Business, and Transportation Committee.
The bill aligns with increased legislative activity following Donald Trump’s electoral win. Wyoming, led by Senator Cynthia Lummis, aims to deploy $300 million in BTC reserves.
Bitcoin Laws, a legislative tracker, confirms 15 states have submitted similar bills, though none have passed. Arizona’s proposal reached a general floor vote, while North Dakota and Wyoming abandoned earlier attempts.
NEW: NEW MEXICO BITCOIN RESERVE BILL
SB57 Allows New Mexico to invest 5% of public funds into Bitcoin! pic.twitter.com/D2ALZkcbPm
— Julian Fahrer (@Julian__Fahrer) February 5, 2025
At the federal level, Trump’s administration directed crypto advisor David Sacks to draft a framework for a national BTC reserve within 180 days. The plan, labeled a “national digital stockpile,” lacks concrete deadlines. Polymarket data shows traders assign below 50% odds to a U.S. BTC reserve launching by 2025, indicating market doubts about near-term adoption.
New Mexico’s 5% allocation would equate to $175 million in BTC purchases based on its $3.5 billion general fund. Proponents argue Bitcoin acts as a hedge against fiat currency risks. Critics cite BTC’s price volatility and regulatory uncertainty as barriers.
Bitcoin Reserve Race: AZ takes the lead!
Arizona’s Senate Bill 1025 passed both Democrat and Republican caucus votes, and now moves to a general floor vote. pic.twitter.com/EuutSEf2ZU
— Bitcoin Laws (@Bitcoin_Laws) February 5, 2025
State-level BTC reserve bills have not influenced broader price trends, which remain tied to macroeconomic factors. Analysts note that even if all 15 states allocated 5% to BTC, the total $8.75 billion exposure would represent less than 1% of Bitcoin’s $1 trillion market cap.
The legislative push tests Bitcoin’s role in institutional portfolios. While Wyoming and Arizona lead the charge, stalled bills elsewhere highlight political divides. For now, the BTC reserve movement remains a legislative experiment, with outcomes hinging on regulatory clarity and market stability.
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