Kraken team supports Senate in planning strategic Bitcoin reserve, ten states set to approve new legislation
- Senator Cynthia Lummis met with the Kraken exchange team to discuss the strategic Bitcoin reserve and comprehensive digital asset frameworks.
- Ten states have introduced legislation for a strategic Bitcoin reserve.
- DOGE leader Vivek Ramaswamy could be planning to run as Ohio governor and is a strong crypto supporter.
In a post on Friday, Senator Cynthia Lummis disclosed a meeting held with members of the Kraken exchange team centered on the way forward for the potential US strategic Bitcoin reserve and crypto regulations.
Ten states introduce bill for Bitcoin strategic reserve, Lummis strengthens industry ties
Ten states have proposed a bill for a Bitcoin strategic reserve days before Donald Trump takes the presidential stage for the second time.
The states, including Massachusetts, Wyoming, New Hampshire, Alabama, Florida, Pennsylvania, Texas, Ohio, North Dakota and Oklahoma, have introduced legislation to convert part of their state funds to Bitcoin investments.
Several of the states also added in their proposals that they would allocate up to 10% of the state funds to buy Bitcoin.
The bills indicate a high interest in seeing a Bitcoin reserve as Donald Trump is allegedly expected to sign several executive orders approving it.
Several key figures have also continued to work tirelessly towards the cause. Among them is Senator Cynthia Lummis, who revealed a meeting she had with some crypto figures, including Kraken executives, on Friday.
The meeting centered on crypto regulations under the new tenure and to get plans for the Bitcoin Strategic reserve "across the finish line."
Trump is also likely to make crypto a national priority during his tenure, according to a Bloomberg report on Thursday.
The buzz around the strategic Bitcoin reserve has stirred massive anticipation across the crypto market. Bitcoin trades at $104,430, up over 4% in the past 24 hours.
A Bitcoin strategic reserve could be the key to a sustained bull rally in 2025, as several analysts have predicted it could stretch BTC's rally to $150,000.
However, some reports alleged that Donald Trump might approve an alternative digital asset reserve known as America's first crypto reserve, specifically for US-native tokens, including XRP, Solana (SOL) and stablecoin USDC. The potential altcoin reserve is seen as controversial by several market participants.
Meanwhile, crypto advocate Vivek Ramaswamy, who was chosen as co-leader of the Department Of Government Efficiency (DOGE), alongside SpaceX and Tesla CEO Elon Musk, could be planning to run as governor of Ohio. Should he emerge as the winner, it could reform crypto regulations in the state.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
