Essential Highlights
- Efforts to set up state-level Bitcoin reserves have encountered challenges in some U.S. states.
- Several states are actively working on establishing their initial state-backed Bitcoin reserve.
- Legislators in multiple states have pledged to reconsider the Bitcoin reserve proposal in upcoming sessions.
A nationwide initiative to create state-level Bitcoin reserves is gaining traction, with almost half of U.S. states proposing laws to invest in BTC.
Motivated by Donald Trump’s support for a national Bitcoin reserve, legislators in 24 states have introduced measures to dedicate public funds to Bitcoin or Bitcoin-backed investment vehicles.
Despite the increasing interest, there remains significant opposition.
Six U.S. States Decline Bitcoin Reserve Proposal
In recent weeks, six states have voted against Bitcoin reserve bills, citing apprehensions regarding financial risks, regulatory ambiguity, and the use of taxpayer funds.
Conversely, 18 states have moved forward with the legislation, maintaining the race to be the first state to adopt Bitcoin as a strategic reserve asset.
Montana
Montana proposed a Bitcoin reserve plan on Jan. 31, which aimed to invest up to $50 million in Bitcoin, digital assets, stablecoins, or precious metals.
However, House Bill 429 was rejected during its second reading, with 59 lawmakers opposing it and only 46 in support.
Fiscal conservatives were against using general funds for what they considered “speculation with taxpayer dollars.” An amendment to fund the initiative through interest from ARPA funds was also turned down.
South Dakota
South Dakota’s HB 1202 sought to allocate up to 10% of state funds to Bitcoin through a secure custody solution. Unfortunately, the House Commerce and Energy Committee dismissed the bill in a 9-3 vote on Feb. 24.
North Dakota
North Dakota opted for a more cautious route by introducing a resolution on Jan. 10 to assess the viability of a Bitcoin reserve.
While it did not propose immediate investments, the study was intended as a precursor to a formal reserve.
Yet, the measure, HB 1184, failed to secure passage in the House, with 57 votes against and 32 in favor.
Pennsylvania
Pennsylvania was an early participant in the Bitcoin reserve debate, putting forth its bill in November 2024.
HB 266 aimed to invest up to 10% of the state’s general, investment, and rainy-day funds in Bitcoin.
Nevertheless, the bill was unable to pass the House of Representatives and was effectively sidelined by Feb. 25.
Wyoming
Wyoming introduced a Bitcoin reserve bill on Jan. 18, with support from five Republican senators, which sought to have the state treasurer exclusively invest public funds in Bitcoin.
Unlike other proposals, this plan excluded stablecoins and other digital assets.
However, the state committee rejected the bill on Feb. 6, halting its advancement.
Mississippi
Mississippi presented HB 1590 on Feb. 4, aiming to designate a portion of public funds for Bitcoin.
This bill was short-lived, failing to pass the committee by Feb. 17.
The Vision for Bitcoin Reserves Remains Alive
In spite of these setbacks, lawmakers in various states are planning to reintroduce Bitcoin reserve bills in future sessions. Some intend to refine their legislative tactics to address concerns raised during earlier discussions.
At present, 18 states continue to pursue the establishment of the first state-backed Bitcoin reserve. Arizona and Oklahoma are at the forefront, having overcome significant legislative challenges, including committee approvals and floor votes.
On the national stage, the chances of a federal Bitcoin reserve have also improved.
The 2024 elections have resulted in a more Bitcoin-friendly Congress, with the addition of two pro-Bitcoin senators and 13 more House representatives.
With a more supportive Congress in place, the possibility of establishing a federal Bitcoin reserve is gaining momentum.
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