Despite strong support from the crypto industry, efforts to create Bitcoin reserves in many US states are facing major obstacles. Several key bills have failed due to divisions within the Republican Party, leaving the future of the Bitcoin Reserve uncertain.

Failure of key bills
Over the past few months, nearly 30 states have proposed bills to add Bitcoin to their reserves, hoping to use BTC as a hedge against inflation. The crypto industry hopes that if some of the proposals are successful, a wave of Bitcoin purchases from states could create billions of dollars in new liquidity.

However, this movement is facing significant difficulties. Montana lawmakers recently rejected the Bitcoin Reserve proposal by a vote of 41-59. It is worth noting that the Montana House of Representatives currently has 58 Republicans and 42 Democrats, indicating that a significant number of Republicans have not supported the bill. In North Dakota, a state with a strong Republican leaning, the level of opposition is even greater.

Wyoming Senator Cynthia Lummis, one of the leading pro-crypto politicians in the United States, also failed to convince her colleagues to pass the Bitcoin Reserve proposal. These developments show that the Republican Party itself – the party of former President Trump – is the biggest obstacle to state-level Bitcoin reserve plans.

Trump supports Bitcoin, but the party opposes it internally
During his election campaign, Donald Trump publicly expressed his support for Bitcoin and the digital asset reserve plan. He even signed an executive order asking the cryptocurrency working group to evaluate the potential of a national digital asset reserve.

However, recent developments suggest that not all Republicans are on board with Trump's vision. Some lawmakers have argued that the plan is risky, especially given the use of taxpayer money to invest in a highly volatile asset.

Texas has been one of the most aggressive in pushing for the Bitcoin Reserve, with the state's lieutenant governor recently declaring it a "top priority" by 2025. However, SB 21, which would allow Texas to hire a cryptocurrency company to manage its Bitcoin reserves, has been met with fierce opposition from both the media and lawmakers. The *Houston Chronicle* noted:

"Texas Republicans are moving quickly to pass SB 21. This bill would allow them to empower an industry that does nothing more than waste electricity. SB 21 needs to be killed."

What does the future hold for the Bitcoin Reserve?

While some bills have failed, that doesn’t mean the Bitcoin Reserve idea is doomed. The crypto industry remains very supportive and willing to spend significant political capital pushing for relevant regulations.

This will be an important test of how much influence the crypto industry has over the Republican Party and the entire US legislative system. If the Bitcoin Reserve movement continues to be thwarted by lawmakers from Trump’s own party, the chances of its success will become increasingly slim.