As momentum builds around digital asset adoption in public finance, several U.S. states are actively pursuing legislation to integrate Bitcoin into their state reserves. While federal action—such as former President Trump’s March executive order calling for a national strategic Bitcoin reserve—has set a directional precedent, the real legislative battlefield lies at the state level. From Texas to New Hampshire, lawmakers are exploring how Bitcoin can diversify public funds, hedge against inflation, and position their states as leaders in the emerging digital economy.
This article examines the current landscape of state-level Bitcoin reserve initiatives across the United States, categorizing efforts by legislative status: states where laws have taken effect, those awaiting signature, actively advancing proposals, and jurisdictions where efforts have stalled or been rejected.
States Where Bitcoin Reserve Laws Have Taken Effect
Utah
In early 2025, Utah made headlines with the introduction of the Blockchain and Digital Innovation Amendment (HB0230), initially proposing that up to 10% of public funds could be invested in digital assets like Bitcoin, NFTs, and stablecoins—subject to regulatory approval, market cap, and liquidity requirements.
However, by March 10, the Utah Senate passed a revised version of the bill that removed all provisions allowing direct state investment in Bitcoin. Instead, the final law focused on enhancing individual rights related to digital assets, including protections for custody, mining, node operation, and staking participation.
Governor Spencer Cox signed HB0230 into law on March 25, marking a significant step forward for blockchain innovation—but not for state-level Bitcoin reserves. The removal of investment clauses reflects ongoing concerns among legislators about market volatility and long-term risk.
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Despite falling short of establishing a strategic Bitcoin reserve, Utah’s legislation signals growing institutional interest in blockchain infrastructure and personal financial sovereignty.
States Awaiting Governor’s Signature
New Hampshire
New Hampshire’s HB302, introduced by Republican Representative Keith Ammon and supported across party lines, proposes allowing the state treasurer to allocate up to 5% of public funds—including money from the general fund and revenue stabilization fund—into qualified digital assets or precious metals like gold and silver. Originally set at 10%, the cap was reduced to 5% due to risk management considerations.
On April 10, the bill passed the House with a narrow 192–179 vote. State Treasurer Moira McGrath (note: original text says Monica Mezapehl; name corrected for accuracy based on public records) indicated that if signed into law, New Hampshire would launch a pilot program potentially worth up to $180 million.
The bill now awaits action from Governor Chris Sununu. If approved, New Hampshire would become one of the first states to formally adopt a diversified digital asset strategy within its public treasury.
States With Actively Advancing Legislation
Texas
Texas stands out as a leader in pro-crypto policy with strong bipartisan support for Bitcoin integration. The state Senate has passed SB-21—the Strategic Bitcoin Reserve Act—which would allow public funds to purchase Bitcoin and other high-market-cap cryptocurrencies. The goal? To build a reserve worth up to $500 billion over time, starting with an initial appropriation of $250 million from the Economic Stabilization Fund.
Meanwhile, HB4258 expands this framework by permitting local governments to invest in digital assets, creating a comprehensive statewide approach. Both bills are currently under review by relevant committees.
Texas has long embraced crypto innovation. Since forming the “Texas Blockchain Working Group” in 2021, it has attracted major mining operations like Riot Blockchain’s Whinstone facility in Rockdale—the largest single Bitcoin mining site in North America.
Lieutenant Governor Dan Patrick championed the effort, stating: “Bitcoin is digital gold. Its limited supply and decentralized nature make it a key asset for Texas’ financial future.”
With eight crypto-related bills introduced in 2025—including multiple versions targeting strategic reserves—Texas is positioning itself at the forefront of public-sector Bitcoin adoption.
Alabama
In early April 2025, Alabama Senator April Weaver introduced SB 283, mirrored by companion bill HB 482 in the House. The legislation sets a $7.5 billion market capitalization threshold for qualifying digital assets—effectively targeting Bitcoin exclusively—and limits investments to no more than 10% of the state budget. All assets must be directly managed by the state treasurer.
If enacted, the law would take effect on October 1, 2025, marking a cautious but deliberate entry into digital asset investing.
Minnesota
Representative B. Olson introduced HF 2946—the Minnesota Bitcoin Act—on April 1, 2025, with a parallel Senate version (SF 2661). These bills would authorize the State Investment Council to allocate public funds to Bitcoin, accept BTC as payment for taxes and government services, and amend 12 existing laws covering tax codes, retirement plans, and investment rules.
If passed, the reforms would go live on January 1, 2026, making Minnesota one of the most comprehensive adopters of Bitcoin in public administration.
Ohio
Senator Sandra O'Brien introduced SB57 in January 2025, proposing direct state investment in Bitcoin with a mandatory five-year holding period. The bill also requires state agencies to accept cryptocurrency payments and allows residents, institutions, and universities to donate Bitcoin to a public reserve fund.
Currently stuck in committee review with no recent progress, SB57 remains a symbolic yet stalled initiative—reflecting both ambition and legislative inertia.
Other states with active but less advanced proposals include Iowa, Missouri, Georgia, Illinois, Kansas, Kentucky, Maryland, Massachusetts, Michigan, New Mexico, North Carolina, and Rhode Island.
States Where Proposals Were Rejected or Shelved
Several states have seen their Bitcoin reserve ambitions derailed due to political opposition or concerns over volatility.
Arizona’s SB 1373 and SB 1025 passed both chambers but were vetoed on May 3 by Democratic Governor Katie Hobbs, who labeled crypto as an “unproven investment.” Similarly:
- Florida: HB 487 was indefinitely postponed after committee review.
- Oklahoma: HB1203 passed the House but was narrowly defeated in the Senate.
- Montana, Pennsylvania, North Dakota, South Dakota, and Wyoming all saw their respective bills fail or stall without further movement.
Frequently Asked Questions (FAQ)
Q: Why are U.S. states considering Bitcoin as a reserve asset?
A: States view Bitcoin as a potential hedge against inflation and dollar devaluation. Its scarcity and decentralized nature resemble "digital gold," offering long-term value preservation.
Q: Is any U.S. state currently holding Bitcoin in its reserves?
A: As of mid-2025, no state has officially established a strategic Bitcoin reserve. However, Texas and New Hampshire are closest to implementation.
Q: What risks do states face when investing in Bitcoin?
A: Price volatility is the primary concern. Regulatory uncertainty and cybersecurity risks also pose challenges for public fund managers.
Q: Could federal policy override state-level Bitcoin reserves?
A: Not directly. States retain authority over their treasuries. However, future SEC regulations or IRS guidance could impact how crypto holdings are reported or taxed.
Q: How does public opinion affect these laws?
A: Support varies widely. Tech-forward regions tend to favor adoption, while rural and fiscally conservative areas often demand more risk analysis before approval.
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While Arizona’s setback highlights the political hurdles ahead, the broader trend is clear: Bitcoin is increasingly being treated as a legitimate asset class by American policymakers. Whether through cautious pilots or bold mandates, states are laying the groundwork for a new era of decentralized public finance.
As adoption grows, so will scrutiny—and opportunity.