New Mexico Joins Growing Number of States Proposing Bitcoin Investment Plans

TLDR:

• New Mexico has introduced Senate Bill 57 (also referred to as SB275), proposing to invest 5% of public funds in Bitcoin as part of a “Strategic Bitcoin Reserve Act”
• The State Investment Officer would manage the Bitcoin reserve under State Investment Council oversight, with funds secured in cold storage
• Senator Ant Thornton introduced the bill, aiming to diversify state investments beyond traditional stocks and bonds
• Approximately 22 US states have introduced similar Bitcoin-related bills, including Indiana’s proposal for Bitcoin ETF exposure in retirement funds
• Federal Government’s Crypto & AI Czar David Sacks confirmed plans for a national Bitcoin reserve, though no timeline has been specified

New Mexico has become the latest U.S. state to propose investing public funds in Bitcoin, joining a growing movement of state-level cryptocurrency initiatives. Senator Ant Thornton introduced Senate Bill 57, also known as the “Strategic Bitcoin Reserve Act,” which would allow the state to invest 5% of its public funds in Bitcoin.

The bill, which has been presented to the New Mexico Senate, outlines a plan for managing state Bitcoin investments through official channels. Under the proposed legislation, the State Investment Officer would oversee the Bitcoin reserve, operating under the direction of the State Investment Council to ensure proper management and accountability.

Security measures feature prominently in the proposal. The bill specifically calls for the use of cold storage solutions to protect the state’s Bitcoin holdings, demonstrating an awareness of the importance of robust security protocols in cryptocurrency management.

The proposed legislation aims to diversify New Mexico’s investment portfolio beyond traditional financial instruments. Currently, the state’s investments are primarily concentrated in stocks and bonds, and supporters argue that adding Bitcoin could provide new opportunities for growth and returns.

According to details shared on social media platform X, the Strategic Bitcoin Reserve Act would establish an alternative treasury system for the state. This structure would allow New Mexico to potentially benefit from Bitcoin’s long-term price appreciation while maintaining separate accounting from traditional state funds.

🚨 NEW: NEW MEXICO BITCOIN RESERVE BILL

SB57 Allows New Mexico to invest 5% of public funds into Bitcoin! pic.twitter.com/D2ALZkcbPm

— Julian Fahrer (@Julian__Fahrer) February 5, 2025

The bill includes provisions for transparency and public education about the Bitcoin investment program. These requirements suggest an effort to maintain accountability and keep citizens informed about how public funds are being managed in this new asset class.

Senator Thornton, in presenting the bill, highlighted potential economic benefits beyond direct investment returns. The establishment of a Bitcoin reserve could attract cryptocurrency-related businesses to New Mexico, potentially creating new jobs and economic opportunities for state residents.

New Mexico’s initiative mirrors similar efforts across the United States. Indiana recently filed a bill seeking Bitcoin ETF exposure for state retirement funds, introduced by Representative Jake Teshka in late January. Utah has also put forward legislation to invest in Bitcoin assets.

The movement has gained considerable momentum, with approximately 22 states now having introduced various forms of Bitcoin-related legislation. This widespread interest suggests a growing acceptance of cryptocurrency as a potential store of value at the state government level.

At the federal level, Crypto & AI Czar David Sacks has confirmed that the U.S. government is evaluating proposals to establish a national Bitcoin reserve. During a recent press conference, Sacks discussed the federal government’s interest in digital asset stockpiling, though no specific timeline has been announced for implementation.

The current market context adds relevance to these legislative initiatives. Bitcoin was trading at $96,679 at the time of the bill’s introduction, showing a 1.1% increase. The cryptocurrency had experienced a 24-hour trading range between $96,301.67 and $99,113.20.

The State Investment Council would need to develop specific guidelines for implementing the Bitcoin investment strategy if the bill passes. These guidelines would likely address issues such as purchase timing, custody arrangements, and risk management protocols.

Public response to the bill has varied, with supporters pointing to potential financial benefits and critics raising questions about volatility and risk management. The legislative process will likely include public hearings and committee reviews before any final decisions are made.

The proposed 5% allocation represents a measured approach to cryptocurrency investment, balancing potential opportunities with risk management considerations. This percentage would allow the state to gain exposure to Bitcoin while maintaining a predominantly traditional investment portfolio.

Other states considering similar legislation are watching New Mexico’s progress with interest. The outcome of this bill could influence how other state governments approach cryptocurrency investment in their own jurisdictions.