Ethereum’s Market Capitalization Milestone
Ethereum’s market capitalization has crossed the $500 billion mark, marking a significant milestone that aligns with the investment guidelines set forth by several U.S. states.
Legislative Developments in Cryptocurrency Investments
Recently, New Hampshire became the first state to pass legislation concerning cryptocurrency investments with the enactment of the Strategic Bitcoin Reserve Act on May 7. This law allows the State Treasurer to allocate up to 5% of public funds, including the general fund and other sanctioned sources, into cryptocurrency projects that meet the criteria of having a market cap above the $500 billion threshold.
In Texas, the Bitcoin Reserve Act, known as SB 21, was signed into law by the Governor on June 22. This legislation is aimed at creating a state-managed fund that can only invest in cryptocurrencies that have maintained an average market capitalization of at least $500 billion over the preceding year, making them eligible for state budget allotments.
Further, the Oklahoma House of Representatives voted on March 25 to endorse the Strategic Bitcoin Reserve Act, which permits the investment of up to 10% of the state’s public funds into Bitcoin or any digital asset that also has a market cap exceeding $500 billion. However, this act has yet to be enacted into law.
Impact on Policy and Investment Strategies
As these developments unfold, Ethereum’s rising market cap continues to influence policy changes and investment strategies across the nation, paving the way for greater institutional involvement in the cryptocurrency space.
