2024 was big for bitcoin. States could see a crypto policy blitz in 2025 in spite of the risks
The new year will usher in the bitcoin-friendly administration of President-elect Donald Trump and an expanding lobbying effort in statehouses
HARRISBURG, Pa. — The new year will usher in the bitcoin-friendly administration of President-elect Donald Trump and an expanding lobbying effort in statehouses that, together, could push states to become more open to crypto and for public pension funds and treasuries to buy into it.
Proponents of the uniquely volatile commodity argue it is a valuable hedge against inflation, similar to gold.
Many bitcoin enthusiasts and investors are quick to criticize government-backed currencies as prone to devaluation and say increased government buy-in will stabilize bitcoin's future price swings, give it more legitimacy and further boost an already rising price.
But the risks are significant. Critics say a crypto investment is highly speculative, with so much unknown about projecting its future returns, and warn that investors should be prepared to lose money.
Only a couple public pension funds have invested in cryptocurrency and a new U.S. Government Accountability Office study on 401(k) plan investments in crypto, issued in recent days, warned it has “uniquely high volatility” and that it found no standard approach for projecting the future returns of crypto.
It has already been a landmark year for crypto, with bitcoin hitting $100,000, the U.S. Securities and Exchange Commission approving the first exchange-traded funds that hold bitcoin and crypto enthusiasts being cheered by Trump's promise to make the United States the “bitcoin superpower” of the world.
Lawmakers in more states can expect to see bills in 2025 to make them crypto-friendly as analysts say crypto is becoming a powerful
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