‘House Bill 0201 (HB0201)’, a legislative proposal that seeks to permit the state to allocate a portion of its public funds to Bitcoin investments.
The bill sets a cap of 3% on BTC investments from eligible state funds, including the general fund, the permanent mineral trust fund, and the permanent land fund. It authorizes the Wyoming State Treasurer to either purchase BTC directly or invest in regulated Bitcoin Exchange-Traded Products (ETPs) through registered investment companies.
This initiative aims to diversify the state’s investment portfolio while exploring Bitcoin’s potential as a growing asset.
The highlights of the proposed bill
Representative Jacob Wasserburger, who sponsors the bill, emphasized the importance of innovation in financial policy. “Wyoming’s decision to invest in Bitcoin is both forward-thinking and aligned with the state’s leadership in financial innovation,” he stated.
The bill outlines safeguards for Bitcoin investments, including rules for secure storage and the requirement of annual performance reviews. Wyoming has embraced blockchain and cryptocurrency through initiatives like the Special Purpose Depository Institution (SPDI) charter, which enables regulated banks to manage digital assets, solidifying Wyoming’s reputation as one of the most crypto-friendly states in the United States.
The proposed Bitcoin reserve aligns with efforts spearheaded by Wyoming
Senator Cynthia Lummis and former President Donald Trump to establish a U.S. Strategic Bitcoin Reserve. Senator Lummis has expressed strong support for BTC as a reserve currency, citing its potential to strengthen the U.S. dollar and enhance the nation’s economy.
Representative Wasserburger echoed this sentiment, describing the accumulation of a strategic Bitcoin reserve as both a financial strategy and a step toward cementing America’s dominance in the digital economy.
Wyoming’s initiative serves as a potential model for other states, such as Oklahoma, which is considering similar legislation. Oklahoma State Representative Cody Maynard recently proposed the Strategic Bitcoin Reserve Act to safeguard state funds while embracing technological innovation.
Alignment with broader trends in cryptocurrency
Wyoming’s HB0201 also includes stringent measures to ensure transparency and accountability, requiring the state treasurer to submit annual reports on Bitcoin investments, asset management, and market valuations. The bill empowers the treasurer to create regulations that enhance the security and effective management of these investments.
By limiting Bitcoin investments to a fraction of state resources, Wyoming aims to mitigate risks while assessing BTC’s viability as a long-term asset.
This proposal aligns with broader trends in cryptocurrency adoption and reflects former President Trump’s favorable stance on Bitcoin. His administration emphasized positioning the U.S. as a leader in the crypto space, which contributed to growing optimism in the market.
Following Trump’s pro-crypto policies, Bitcoin and other digital assets such as XRP, SOL, and USDC have gained traction as potential reserve currencies, further fueling the momentum for initiatives like Wyoming’s HB0201.
