A wave of state-level Bitcoin reserve proposals has encountered challenges across the U.S., as numerous states have turned down bills aimed at investing public funds in the foremost cryptocurrency.
Among the 50 states, more than 20 are either advocating or contemplating legislation concerning Bitcoin reserves or investments in digital currencies, yet the destiny of many of these bills is still unclear.
Recently, several states, including Montana, South Dakota, North Dakota, Pennsylvania, and Wyoming, have encountered setbacks in their Bitcoin reserve initiatives.
Montana’s proposal, House Bill 429, struggled following its late January introduction. The bill aimed to designate up to $50 million in public funds for Bitcoin, stablecoins, and precious metals.
Although Representative Curtis Schomer argued the bill would diversify state assets and enhance returns, it was ultimately rejected in a 59-41 vote by the House of Representatives on February 21.
Likewise, South Dakota’s HB 1202, proposing to allocate up to 10% of the state’s public funds to Bitcoin, was dismissed by the House Commerce and Energy Committee with a 9-3 vote on February 24.
While bill sponsor Representative Logan Manhart highlighted Bitcoin’s potential to retain value during inflationary periods, State Investment Officer Matt Clark expressed concerns regarding the asset’s volatility.
Pennsylvania, North Dakota, and Wyoming have also faced rejections or stagnation regarding their Bitcoin reserve proposals within legislative committees.
North Dakota’s proposal, HB 1184, aimed at examining the potential of a Bitcoin reserve, failed to secure passage in the House, with a vote tally of 57-32.
Pennsylvania’s HB 2664 suggested investing up to 10% of state funds in Bitcoin but was effectively terminated, while Wyoming’s bill, introduced in mid-January, met rejection from the state committee on February 6.
State and National Bitcoin Reserves
The impetus for Bitcoin reserves at the state level can be traced back to the support for a national Bitcoin stockpile endorsed by former U.S. President Donald Trump during his election campaign last year.
Senator Cynthia Lummis from Wyoming, who chairs the Senate subcommittee on digital assets, proposed a bill in July 2024 calling for the U.S. government to acquire 1 million Bitcoin over five years for a strategic national reserve; however, her state’s Bitcoin reserve initiative has struggled to gain momentum.
Looking Ahead
Despite resistance from certain states, Bitcoin reserve proposals are making headway in other areas.
Utah is leading the charge, with its Blockchain and Digital Innovation Amendments bill passing the revenue and taxation subcommittee with a 4-2-1 vote on February 20.
HB 230 is now on the verge of approval, permitting the state treasurer to allocate up to 5% of public funds to digital assets, with Bitcoin being the only asset satisfying the $500 billion market cap threshold, positioning it as the leading candidate for the state’s reserve asset.
Texas, recognized for its pro-crypto stance, is advancing two separate Bitcoin-related proposals.
One bill seeks authorization for the state to allocate up to 1% of its general revenue fund to Bitcoin, whereas another bill focuses on Bitcoin donations and the conversion of cryptocurrency payments.
On February 25, Oklahoma’s House Government Oversight Committee advanced HB 1203, the Strategic Bitcoin Reserve Act, with a 12-2 vote.
Arizona’s Senate Finance Committee also advanced SB 1025, proposing that up to 10% of public funds, including pension funds, be invested in cryptocurrencies such as Bitcoin. The bill is now awaiting a House vote.
With 18 bills currently under consideration in various states, the pursuit of state Bitcoin reserves remains vibrant as lawmakers deliberate the promise of digital assets in public financial management.
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