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@ Tristan Hillerich
2025-02-15 23:20:11
Since the last time I wrote about a United States Bitcoin Strategic Reserve, there have been a few federal updates. Notably, Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick will be developing a plan to create the first United States sovereign wealth fund after President Donald Trump signed an executive order. The order also directs Bessent and Lutnick to develop a plan for creating the fund within 90 days. Lutnick holds hundreds of millions of dollars of Bitcoin and is bullish on the future of Bitcoin and I personally believe this is a huge indication that Bitcoin will be included in this fund.
Additionally, David Sacks, the Crypto Czar said that a top agenda item for his task force is evaluating “the feasibility of a Bitcoin reserve.”
Both of these developments in my opinion are very positive for the future of Bitcoin at a federal level but the reality is that Federal legislation takes time and can suffer from gridlock, party disagreements, and overall levels of bureaucracy that states oftentimes don’t have to deal with. For this reason, many states have already made progress in pushing strategic reserve legislation and other Bitcoin-related legislation forward. This is also a reason why I expect the states to once again “lead” ahead of the federal government as it relates to Bitcoin.
Bitcoin Laws ([*bitcoinlaws.io*](https://bitcoinlaws.io/?utm_source=the-arc.beehiiv.com&utm_medium=referral&utm_campaign=the-states-will-lead)) is a resource that has emerged to specifically track Bitcoin and other digital asset legislation at the state level. The website highlights all of the outstanding legislation and provides the status and details on what is being proposed. I personally believe this resource will continue to be incredibly important for tracking what is actually happening at the state level as it relates to Bitcoin. It is rather difficult to stay up to date on all of the legislative occurrences as it relates to Bitcoin and Bitcoin Laws provides a one-stop-shop for all of the updates.
Most importantly, as of February 10th, 21 ‘Bitcoin Reserve’ bills have been introduced at the state level with 19 still active in the legislative process.
The idea that “the states will lead” reflects a theme of governance from the days of our Founding Fathers—that of Federalism. Federalism is a mode of political organization that allows separate states to unite under a national government while maintaining their own aspects of sovereignty. In layman's terms, Federalism allows for a Federal Government while also allowing State governments to have power within their individual borders. This system emphasizes a division of power with certain powers being granted to the federal government and others residing at the state level.
When the Founding Fathers created the Articles of Confederation they emphasized state power over a strong federal government. This system led to some problems such as economic instability amongst states and difficulties in coordinating a national defense eventually leading to the Constitution taking over and being the rule of the land for the centuries to follow. The Constitution created a stronger federal government while still protecting levels of state authority, autonomy, and sovereignty. The Tenth Amendment is a key aspect of this where it states, “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” The amendment means that any powers *not explicitly given* to the federal government by the Constitution fall to the states.
The states having and maintaining individual power was a focal point when the United States was created and remains true today. Justice Louis Brandeis gave one of the more famous statements related to the rights of the states when he referred to them as “laboratories of democracy” during the case *New State Ice Co. v. Liebmann* (1932)*.* The full quote was, “It is one of the happy incidents of the federal system that a single courageous State may, if its citizens choose, serve as a laboratory; and try novel social and economic experiments without risk to the rest of the country.” The meaning emphasized the idea that states were “laboratories” and should be encouraged to enact policy ahead of the federal government. The rationale for why states should be encouraged to do this is any policy they enact is specifically within their own borders while federal legislation typically applies to the whole country. As such, the “test area” for any new piece of legislation is much smaller and impacts far fewer people than any federally enacted policy of the same measure.
We have seen the “states lead” with numerous issues throughout the years including legislation on same-sex marriage, marijuana, healthcare experiments, climate change regulations, civil rights, and more. I believe the table is being set for the states to once again lead the federal government as it relates to policy regarding a Bitcoin Strategic Reserve.
It is also my personal belief the urgency at which legislation is confirmed for a Bitcoin Strategic Reserve is a matter of national security. Every day that a federal strategic reserve for Bitcoin is not enacted is another day that foreign adversaries and other nations can front-run our country.
The positive of this scenario is that the common man can also front-run the federal government.
The positive of this scenario is that states can also front-run the federal government.
The positive of this scenario is that states have the opportunity to once again lead and pave the way for what I believe the United States Federal government will also adopt.
Strategic Reserves within the United States both at the state and federal level will have their 0 to 1 moment and rapidly have their 1 to many rush to completion.
The States will Lead.
**Stack SATs.**
*The views and opinions expressed here are for entertainment purposes only and should, in no way, be interpreted as financial or investment advice. Always conduct your own research when making an investment or trading decision, as each such move involves risk. I am not a financial advisor and do not claim to be qualified to convey information or advice that a registered financial advisor would convey to clients as guidance. Nothing contained in this e-mail/article constitutes, or shall be construed as, an offering of financial instruments, investment advice, or recommendations of an investment strategy. If you are seeking financial advice, find a professional who is right for you.The views and opinions expressed here are for entertainment purposes only and should, in no way, be interpreted as financial or investment advice. Always conduct your own research when making an investment or trading decision, as each such move involves risk. I am not a financial advisor and do not claim to be qualified to convey information or advice that a registered financial advisor would convey to clients as guidance. Nothing contained in this e-mail/article constitutes, or shall be construed as, an offering of financial instruments, investment advice, or recommendations of an investment strategy. If you are seeking financial advice, find a professional who is right for you.*