There Will Be No Federal Solution to the Crisis That’s Coming

As President-elect Donald Trump assembles a cabinet that will be tasked with implementing policy change at the federal level, individual state governments are plotting their own policy responses.

States Take the Lead on Sound Money Legislation

California Governor Gavin Newsom is organizing a coalition of blue states to resist the “Make America Great Again” agenda. Democrat governors aim to, for example, defend sanctuary cities against immigration enforcement efforts, impose their own “clean” energy mandates, and retain funding for Diversity, Equity, and Inclusion programs that could be targeted for elimination by the Trump administration.

Meanwhile, red state governors are largely vowing to work with President Trump to help him implement his agenda.

But however hopeful Trump backers may be for sweeping reforms, the incoming administration will face roadblocks from Congress, the courts, and the entrenched bureaucracy in Washington, D.C.\

The reality is that not all of the nation’s problems can be solved at the federal level. States are stepping up to fill the gaps, particularly when it comes to safeguarding sound money principles.

In fact, several states passed pro-sound money legislation in 2024, thanks in large part to efforts by Money Metals, its customers, and the Sound Money Defense League. For example, Alabama and Nebraska exempted bullion transactions from income taxes, while Wisconsin and New Jersey eliminated sales taxes on sound money.

Money Metals’ newly released 2025 Sound Money Index reflects this latest progress. It also reveals that several states, including Vermont, Maine, and California, remain hostile environments for precious metals investors.

Although some state governors will never see the light when it comes to sound money principles, bipartisan reforms have proven possible. Bills to eliminate taxes on precious metals have sailed through legislatures to become law in blue states like New Jersey, providing a model for others to follow.

The Growing Risks of a National Debt Crisis

The elephant in the room – the rapidly growing $36 trillion national debt – wasn’t even a seriously contested issue in the 2024 campaign. Trump has effectively conceded that the debt won’t be tackled in any meaningful way because the political will to do so does not exist.

This growing fiscal burden poses severe risks for the economy and the stability of the U.S. dollar. Individual citizens must take proactive steps to protect themselves from the potential fallout of a debt crisis that could accelerate the depreciation of the currency.

State governments, too, can act to mitigate these risks. States that lead the way in adopting sound money policies, such as removing taxes on gold and silver and holding bullion in official reserves, position themselves as safe havens in the event of a national financial meltdown.

Why Precious Metals Are Essential for Financial Security

It is up to individual citizens to safeguard their financial futures by holding sound money in the form of physical precious metals. Gold and silver provide a hedge against inflation and the declining purchasing power of fiat currency, making them a critical component of personal financial security.

Taxing citizens who choose to exchange fiat currency for bullion (or vice versa) is both unfair and counterproductive. States that tax precious metals transactions are at a competitive disadvantage to states that don’t.

Those states that take the lead in removing all sales and income taxes on gold and silver, holding bullion in official reserves, and fully recognizing gold and silver as legal tender will be the least vulnerable to a meltdown in the U.S. fiat dollar. By adopting these measures, states can create a more stable and secure financial environment for their residents.