KEY POINTS
- Wyoming and Texas may follow in Pennsylvania's $BTC strategic reserve initiative: TRES technical account manager Joelle Azwat
- More autonomy for states to decide their crypto regulations and stances may also trigger further 'fragmentation,' Azwat warned
- She expects new crypto jobs to be created under Trump, as well as increased demand for specialized roles such as crypto accounting
Bitcoin, the world's top cryptocurrency by market value, has answered many questions and provided solutions to unbanked populations over the years, but in recent months, its potential as a reserve asset has been ringing louder than ever.
Pennsylvania Rep. Mike Cabell's introduction of legislation that would allow the state to hold Bitcoin on its balance sheet as a reserve asset positions Keystone State as a first mover in terms of state BTC strategic reserve initiatives.
In an exclusive with International Business Times, Joelle Azwat, CPA and technical account manager at Web3 financial data lake TRES, discussed the impact of the development in the broader crypto space and how the industry will fare under a pro-crypto administration.
Government Trust in Crypto On the Rise
The idea of Pennsylvania becoming the first state in the country to adopt Bitcoin as a strategic reserve asset triggered excitement across the crypto space, with many expecting a ripple effect in the coming months.
For Azwat, the bill's introduction is more than just a regular legislation proposal, especially in the case of an emerging industry whose early years were laden with skepticism and mistrust.
"Moves like Pennsylvania signal government trust in cryptocurrencies, which could drive broader adoption, encourage innovation, and support free enterprise in ways that extend beyond payments to a range of future commercial and governmental applications," she said.
Indeed, BTC has come a long way since its pseudonymous creator Satoshi Nakamoto first published the digital currency's white paper. It used to be just a digital coin used by enthusiasts but more than a decade later, millions of people around the world use it for various transactions.
The States That May Soon Follow Suit
GOP Sen. Cynthia Lummis of Wyoming has been floating the possibility of a national Bitcoin strategic reserve in the past months. While the pro-Bitcoin senator, who is also an ally of President-elect Donald Trump, still needs to work hard to get bipartisan support for her proposal, Azwat believes it's not impossible for Wyoming to follow in Pennsylvania's footsteps on the state level.
"States like Wyoming and Texas are already strong contenders for second-mover status. Wyoming has been a leader in cryptocurrency legislation, having already introduced favorable regulatory frameworks for blockchain and digital assets including planning of launching a U.S. dollar-backed stablecoin in the first quarter of 2025," she said.
As of Texas, Azwat noted that the state has had a friendly stance toward Bitcoin mining and digital assets, attracting crypto firms to do business in the area. "With the state's significant energy resources, it could consider Bitcoin as a hedge against inflation or a way to diversity its state funds," she projected.
Trump's Role in Building Confidence
Since Trump won the U.S. presidential elections, crypto markets have been on a significant rally, led by Bitcoin and several top altcoins. In particular, BTC prices are nearing $100,000.
Many experts have said Trump's pro-crypto pivot during his campaign helped him win the presidency and the 2024 U.S. elections also proved that the crypto voter does exist.
For Azwat, Trump's stance "likely" played a role in boosting Rep. Cabell's confidence to introduce Pennsylvania's BTC reserve bill. "Cabell likely recognized an opportunity to capitalize on this sentiment and advance legislation that aligns with Trump's vision. This could also signal other lawmakers that crypto policies have increasing political support, potentially encouraging more action in favor of digital assets," she said.
Is Trump's Stance a Double-Edged Sword?
While Trump's win and the election of many pro-crypto candidates into Congress, a wave of new developments around Bitcoin and blockchain initiatives is expected.
On the other hand, Azwat warns that there is a drawback in the incoming president's "believe in smaller government and the decentralization of power": greater fragmentation across the country.
"By giving states more autonomy to make their own decisions on cryptocurrency regulation, we might see a patchwork of laws, with states like Wyoming and Texas leading the way in adopting crypto-friendly policies. While this could spark innovation, it could also create challenges for national standards and create discrepancies in how crypto is treated across states," she pointed out.
Azwat's concern comes with a lot of weight, given how the U.S. doesn't even have regulatory framework for crypto yet, unlike the European Union that has its MiCA or Japan, which officially recognizes cryptocurrencies as legal property.
Crypto Growth in the Next Four Years
Bitcoin's recent surge and the crypto market's vitality in recent weeks was driven largely by hopes that the Trump government will treat crypto better – as he promised Bitcoiners earlier this year.
Many industry experts have projected BTC prices will only skyrocket further and the pro-crypto Congress will finally provide more clarity on the legal status of some digital assets disputed as securities by the Securities and Exchange Commission (SEC).
Azwat believes the next four years will be a flourishing period for the crypto sector, with new job sectors being created and new job opportunities arising from emerging crypto segments.
She also expects increased demand in "specialized roles" such as crypto accounting, regulatory compliance, blockchain development, and digital asset management. Ultimately, she sees the crypto sector becoming a "major contributor to economic development and technological progress."
It's become apparent in recent weeks that Bitcoin is no longer the widely-doubted digital asset that popped out of nowhere. Other crypto altcoins are also being recognized for the blockchain technology behind them, and more and more people are now utilizing crypto for their financial transactions.
With a pro-crypto administration headed for the White House, it can be safe to conclude that the world's largest economy is entering a new era of crypto recognition, and eventually, broader adoption.
