Summary
- The first Bitcoin Stockpile was introduced only 10 days ago.
- The bill changes Section 3 of Chapter 17 of Title 50 of the state code for the state depositories.
- The bill mandates the State Treasury Department to create policies and procedures for the acceptance, storage, and transaction of Bitcoin.
The state could invest in Bitcoin without any investment restrictions with the second Georgia Bitcoin Reserve Bill, SB 228.
This authorizes the state’s chief financial officer to invest in the leading cryptocurrency, following the state’s announcement of the second Bitcoin reserve bill just 10 days after proposing its first Bitcoin stockpile.
The first was SB 178 which is supported by the Republican sponsors, while the second Bitcoin Reserve Bill, SB 228, is favored by Democrats. The bill changes Section 3 of Chapter 17 of Title 50 of the state code for the state depositories. Moreover, this bill directs the State Treasury Department to “formulate policies and procedures for accepting, storing, and transacting Bitcoin.” It also specifies that any Bitcoin held by the state must be according to these policies and procedures.
Second Bitcoin Reserve Bill SB 228 is highly noted to be the first ‘partisan’ competitor SBR bill. Four senators, including Sen. Esteves, together put forward the new legislation, which is currently in review at the Georgia General Assembly.
Managing of Strategic Bitcoin Reserves
As reported by the Bitcoin Reserve Monitor, 20 of the 50 US states are advancing with legislation to include Bitcoin in their strategic reserves. However, none of these states have yet passed any Bitcoin reserve laws.
Adam Levine, CEO of Fireblocks Trust Company and Senior Vice President of Corporate Development & Partnerships, explained that Bitcoin requires “specialized custody solutions” that differ from traditional reserves such as gold and silver.
Levine emphasized, “The primary focus must be on utilizing the most secure method to protect Bitcoin reserves.” He further pointed out that this approach would reduce risks such as theft, mismanagement, and regulatory challenges.
Levine also mentioned that most governments currently lack the necessary expertise to handle digital assets. Thus, the best course of action would be for these governments to hire licensed custodians who possess the right blend of cybersecurity strength and experience in managing digital assets.
Such custodians would ensure that governments can safeguard their citizens’ financial assets in the “safest possible way,” Levine concluded. The Bitcoin Reserve Monitor indicates that at least 21 U.S. states are exploring the idea of cryptocurrency strategic reserves. These states are at various stages of the approval process. Nineteen states currently have pending legislation, while two are still evaluating proposals. At the same time, four states—Wyoming, Montana, North Dakota, and Pennsylvania—have declined Bitcoin reserve bill proposals.
Montana recently became the latest state to reject a Bitcoin reserve bill. On February 22, the state’s House voted against designating Bitcoin as a state reserve asset. Several lawmakers expressed concerns that it could result in wasting taxpayer funds. House Bill No. 429 was defeated with a 41-59 vote. The bill had proposed creating a fund to invest in metals, stablecoins, and major digital assets.
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*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
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