California lawmakers are making strategic moves to adopt Bitcoin as a state reserve, partnering with a non-profit organization to draft legislation and initiatives.
The United States is preparing to adopt Bitcoin BTC $85 394 24h volatility: 1.0% Market cap: $1.70 T Vol. 24h: $10.65 B as a strategic reserve under the upcoming Donald Trump administration. Several states – led by Texas and Oklahoma – have proposed a bill to adopt Bitcoin as a strategic reserve.
In a bid to retain its status, lawmakers in California, led by Republican Assembly Member Phillip Chen, have been exploring ways to propose and implement a strategic Bitcoin reserve.
According to an announcement on Friday, the office of Chen has appointed Proof of Workforce, a non-profit organization helping people to adopt Bitcoin, to work on several BTC-tested initiatives, including drafting an official bill for a strategic Bitcoin reserve.
Led by founder Don Bei, Proof of Workforce will be helping Chen by advising his policy team.
“As to where and how Bitcoin and digital assets get into the trajectory of California, much is undetermined. What is certain is that this industry is growing in adoption every day, with Bitcoin serving as a global network and asset, representing 2 trillion dollars in value. Therefore, it’s important we take a meaningful look into its role in our great state of California,” Chen noted.
Why California Needs a Bitcoin Strategy
The state of California has suffered significant economic losses, as more businesses are free from the high taxation. For instance, tech billionaire Elon Musk shifted the headquarters of Tesla from California to Texas, mainly due to the unfavorable business climate.
The Proof of Workforce organization has been vibrant in California, including a strategic partnership with the City of Santa Monica to open an official Bitcoin office. According to Lana Negrete, the Mayor of Santa Monica, the Bitcoin office has registered a huge interest in the recent past amid the ongoing mass adoption of digital assets.
Furthermore, California Governor Gavin Newsom signed the Digital Financial Assets Law (DFAL) into effect, which is set to take effect in July 2025. The state of California has to adopt Bitcoin to remain relevant in the coming years in the technology industry.
Market Impact
Bitcoin price has continued to significantly benefit from the ongoing adoption by institutional investors and soon nation-states. The flagship coin has rallied above $105k for the first time in 2025, fueled by ongoing cash inflow through investment products such as the US spot BTC ETFs.
With more publicity traded companies, led by Metaplanet Inc. (Tokyo: 3350), adopting Bitcoin as a hedge against inflation, the BTC’s circulating supply will continue to shrink. Moreover, more nations will follow El Salvador in adopting BTC if the United States, under the Trump administration, approves a strategic BTC reserve before the end of 2025.
Ultimately, Bitcoin will have significant bullish fuel in the coming months to possibly propel towards $200k and beyond.
next