Key Points
- US is looking to adopt Bitcoin as a strategic reserve under the upcoming Trump administration.
- California lawmakers, led by Assembly Member Phillip Chen, are exploring ways to propose a strategic Bitcoin reserve.
The United States is gearing up to adopt Bitcoin as a strategic reserve under the new administration of Donald Trump. A number of states, including Texas and Oklahoma, are leading the charge by proposing bills to adopt Bitcoin as a strategic reserve.
California’s Bitcoin Strategy
To maintain its position, lawmakers in California are exploring ways to propose and implement a strategic Bitcoin reserve. Leading this initiative is Republican Assembly Member Phillip Chen.
Chen’s office announced on Friday that it has enlisted the help of Proof of Workforce, a non-profit organization that assists individuals in adopting Bitcoin. The organization will work on several Bitcoin-related initiatives, including the drafting of an official bill for a strategic Bitcoin reserve.
Don Bei, the founder of Proof of Workforce, will advise Chen and his policy team. Chen stated that while the trajectory of Bitcoin and digital assets in California is still uncertain, it is clear that the industry is growing in adoption every day.
Why California Needs a Bitcoin Strategy
California has experienced significant economic losses as businesses escape its high tax rates. For example, Elon Musk relocated Tesla’s headquarters from California to Texas due to the unfavorable business climate.
Proof of Workforce has been active in California, partnering with the City of Santa Monica to open an official Bitcoin office. Lana Negrete, the Mayor of Santa Monica, reported that the Bitcoin office has seen substantial interest recently, due to the widespread adoption of digital assets.
In addition, California Governor Gavin Newsom signed the Digital Financial Assets Law (DFAL) which is set to take effect in July 2025. To remain relevant in the tech industry in the coming years, California needs to adopt Bitcoin.
Market Impact
The ongoing adoption of Bitcoin by institutional investors and potentially nation-states has been beneficial for the Bitcoin price. The coin has rallied above $105k for the first time in 2025, driven by an influx of cash through investment products like US spot BTC ETFs.
Publicly traded companies, like Metaplanet Inc., are adopting Bitcoin as a hedge against inflation. This will likely reduce the circulating supply of Bitcoin. More nations may follow El Salvador’s example and adopt Bitcoin if the US, under the Trump administration, approves a strategic Bitcoin reserve before the end of 2025.
This could provide substantial bullish momentum for Bitcoin in the coming months, potentially propelling it towards $200k and beyond.
