State Bitcoin Reserve Proposals Examined

TLDR

• 16 U.S. states are currently exploring legislation to establish Bitcoin reserves or enable crypto investments for public funds
• Texas Strategic Bitcoin Reserve Act was referred to Senate Finance Committee, allowing state ownership of Bitcoin and community donations
• Most state bills propose investing 3-10% of state funds in Bitcoin, with requirements for cold storage and security measures
• Utah’s bill has advanced furthest, passing the House of Representatives and awaiting Senate approval
• North Dakota’s proposal was rejected on February 4, 2025, marking the first failed legislation in this wave

Sixteen U.S. states are now considering legislation to establish strategic Bitcoin reserves or enable cryptocurrency investments for public funds. This wave of state-level initiatives has emerged as Bitcoin’s price reached new highs in early 2025.

Texas has taken a leading role with the Texas Strategic Bitcoin Reserve Act, which was referred to the Senate Finance Committee on February 7. The bill establishes guidelines for state Bitcoin ownership and allows Texas residents to donate Bitcoin to promote community investment in the state’s financial future.

Under the Texas proposal, the Comptroller’s Office would oversee the reserve’s administration, implementing cold storage solutions and regular audits. The bill includes strict security measures and prohibits Bitcoin acquisitions from foreign entities or those involved in illegal activities.

Pennsylvania’s House of Representatives introduced their Bitcoin reserve bill in November 2024. The legislation would permit the state Treasurer to invest up to 10% of the State General Fund, Rainy Day Fund, and State Investment Fund in Bitcoin, potentially allowing for nearly $1 billion in Bitcoin purchases.

Ohio joined the movement in December 2024, with State Representative Derek Merrin proposing the Ohio Bitcoin Reserve Act. The bill would create a Bitcoin fund in the state Treasury and give the State Treasurer discretionary power to purchase the asset.

New Hampshire’s approach, introduced by Representative Keith Ammon in January 2025, doesn’t mention Bitcoin by name but sets high market cap requirements that currently only Bitcoin meets. The bill would also allow the state treasurer to engage in lending or staking practices.

Wyoming’s proposal, put forward by five Republican senators, would allow up to 3% of several state funds to be invested in Bitcoin. The bill specifies that Bitcoin must be held through secure custody solutions, qualified custodians, or ETFs.

Massachusetts Senator Peter Duran’s bill would permit up to 10% of the state’s rainy day fund to be invested in Bitcoin or other cryptocurrencies. The legislation includes provisions for Bitcoin lending to generate additional returns for the state.

Oklahoma’s bill, introduced by Representative Cody Maynard, sets a $500 billion market cap requirement for eligible digital assets. The legislation would limit digital asset investments to 10% of total public funds in any state account.

Utah’s “Blockchain and Digital Innovation Amendments” bill has made the most progress, passing the House of Representatives and awaiting Senate approval. The bill would allow up to 10% of state funds to be invested in eligible crypto assets.

Illinois Representative John Cabello’s bill would establish a Bitcoin reserve fund managed by the State Treasurer, requiring Bitcoin deposits to be held for at least five years. The legislation includes provisions for regular audits and biennial reports.

Maryland’s Strategic Bitcoin Reserve Act would allow the State Treasurer to invest funds seized from gambling violations into Bitcoin. Kentucky lawmakers are considering legislation to invest retirement funds in cryptocurrencies with market caps exceeding $750 million.

New Mexico’s recently introduced Strategic Bitcoin Reserve Act would allocate 5% of public funds to Bitcoin investments, with an effective date of July 1 if passed. Alabama State Auditor Andrew Sorrell has publicly supported creating a state Bitcoin reserve, though no bill has been filed yet.

Arizona’s legislation focuses on monitoring Bitcoin ETF developments and studying the feasibility of investing state retirement funds in digital assets. The bill calls for a report outlining three options for safe digital asset investment.

North Dakota became the first state to reject such legislation, with their resolution failing on February 4, 2025. The brief resolution had proposed investing select state funds in digital assets but lacked specific details about implementation.

Most state proposals include requirements for cold storage, security measures, and regular audits. Investment limits typically range from 3% to 10% of state funds, with many bills requiring high market capitalization thresholds that currently only Bitcoin meets.