If states begin to pump parts of their public funds into Bitcoin and other digital assets, it could lock billions of dollars in tokens for long periods, boosting the value of assets that are still publicly traded. Another potential impact is that the United States may prepare millions of people to have personal stakes in the health of the crypto sector - whether they want it or not.

16 U.S. states are actively considering legislation to invest public funds in digital assets, and three more states are likely to join them, as they explore a range of possibilities from Bitcoin stocks to pension fund investments.

Two other states have already dipped small parts of their retirement portfolios into crypto trading funds.

Some timelines in state bills include purchasing Bitcoin and other assets very soon - perhaps long before any national reserve begins.

Millions of Americans may soon discover they are investors in cryptocurrencies when their states intervene in the markets even before the federal government figures out what to do.