rewrite this title Maryland, Iowa, and Kentucky propose legislation to establish Bitcoin reserves

Lawmakers in Maryland, Iowa, and Kentucky have introduced legislation proposing the creation of Bitcoin (BTC) strategic reserves in their respective states.

The latest bills bring the number of US states considering Bitcoin reserves to 17. The proposals aim to integrate Bitcoin into state financial strategies.

Kentucky House Bill 376, introduced by Representative TJ Roberts, aims to revise the state’s financial practices by expanding investment options for excess state funds. 

The bill amends the regulations governing the State Investment Commission and authorizes investments in various asset classes, including digital assets, US government-backed obligations, and collateralized certificates of deposit.

The digital assets must have a market cap of at least $750 billion, averaged over the previous calendar year. Only Bitcoin meets this requirement as of February 2025, while Ethereum (ETH) does not due to its $320.6 billion market cap. 

The bill stipulates that the investment cannot exceed 10% of the state fund’s total excess cash. It allows state agencies to accept payments in digital assets and bullion while prohibiting the use of central bank digital currencies (CBDCs). Additionally, the legislation will allow state retirement funds and deferred compensation plans to invest in exchange-traded products.

The bill establishes a framework for handling receipts of digital assets, ensuring conversion into US currency when necessary. State agencies are authorized to promulgate regulations overseeing these investments.

Maryland and Iowa join Bitcoin race

Maryland’s House Bill 1389, introduced by Representative Caylin Young, proposes the establishment of the Maryland Bitcoin Reserve Fund. 

This initiative would position Bitcoin as a reserve asset for the state. The legislation grants the State Treasurer authority to invest funds obtained by enforcing certain gambling violations into Bitcoin, making it a unique approach to digital asset accumulation.

Meanwhile, Iowa’s House File 246, introduced by Representative Taylor Collins, outlines investment allowances for the State Treasurer. 

The bill permits investments in precious metals and digital assets with a market capitalization exceeding $750 billion, averaged over the previous calendar year. It also allows investments in stablecoins.

The state’s general fund, cash reserve fund, and Iowa economic emergency fund are eligible to make such investments. The bill caps digital asset investments at 5% of the public funds available at the time of investment.

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