The Bitcoin Reserve Bill is still in the exploratory stage at the state level.
Written by: KarenZ, Foresight News
On the evening of March 2, Trump articulated his ambitious vision: "To ensure that America becomes the world capital of cryptocurrency. We are making America great again and advancing a strategic reserve for cryptocurrencies including BTC, ETH, XRP, SOL, and ADA." This initiative not only marks a firm federal support for cryptocurrencies but may also ignite legislative enthusiasm among U.S. states in the realm of digital asset reserves.
Faced with the reality of inflation eroding the purchasing power of traditional assets, state governments, while unable to directly intervene in monetary policy, can explore the possibility of incorporating cryptocurrencies like Bitcoin into public finances through legislation. As of March 4, 2025, 24 states have proposed cryptocurrency reserve bill drafts, attempting to implement Trump's grand blueprint at the local level. These efforts are both a response to national strategy and a reflection of states' proactive actions in financial innovation and economic resilience.
This article will outline the legislative process at the state level in the U.S. and detail the content and progress of Bitcoin reserve proposals from 24 states.
U.S. State Legislative Sessions and Processes
The legislative session in U.S. states refers to the period during which the state legislature (including the House of Representatives and the Senate) formally meets to discuss and pass bills within a year. Due to differences in state constitutions and practices, the timing and length of these sessions vary significantly.
The vast majority of states hold regular legislative sessions annually, typically in the spring (from January to May), with session lengths ranging from a few months to half a year, determined by each state. A few states (such as Montana, Nevada, North Dakota, and Texas) hold sessions every two years (in odd-numbered years), resulting in a slower legislative pace.
The legislative process in U.S. states usually has some subtle differences depending on the state, but most states follow a similar basic framework. Each state has its own constitution and legislative body, typically a bicameral legislature composed of a state House of Representatives and a state Senate responsible for making laws. Below is a typical process for a state-level bill to become law, using most bicameral states as an example:
Proposal: A member of the House or Senate submits a bill draft. After submission, the bill is assigned a number, with "HB" indicating a House bill and "SB" indicating a Senate bill.
Committee Review: After the bill is submitted in writing, it is assigned to the relevant committee for review. The committee may hold public hearings, inviting experts, stakeholders, and the public to provide opinions. Committee members discuss and amend the bill and vote on whether to submit it to the full chamber for consideration.
Initiate Chamber Review: Second reading (members debate and propose amendments) and third reading (final vote).
Review by the Other Chamber: The bill undergoes similar committee review and chamber consideration in the other chamber (e.g., a House bill submitted to the Senate, or vice versa).
If the versions from both chambers are inconsistent, coordination is required.
Governor Approval: The governor may sign, veto, or take no action.
Effective Date: The bill typically takes effect immediately upon signing or on a specific date stipulated in the bill. Some states provide for automatic effectiveness or expiration if not signed within a certain timeframe.
Bitcoin Reserve-Related Bill Drafts in U.S. States
As of now, a total of 24 states in the U.S. have submitted bill drafts related to Bitcoin reserves, with states like Arizona, Texas, and Florida submitting two related bills.
In terms of proposal review progress, most states' bills are still in the draft submission or chamber review stage, while a few states (like Utah) have made more rapid progress. However, five states (Pennsylvania, Montana, North Dakota, Wyoming, and South Dakota) have had their related bills vetoed. The reasons for veto include concerns about risks and volatility associated with digital assets, taxpayer fund risk concerns, the high energy consumption of cryptocurrency mining, and the potential for digital currencies to be used for illegal activities. It is worth noting that pro-cryptocurrency Senator Cynthia Lummis is from Wyoming. Cynthia Lummis proposed a bill in 2024 allowing states to voluntarily hold Bitcoin in reserves and created a "Bitcoin Purchase Program" to buy no more than 200,000 Bitcoins annually over five years, totaling 1 million Bitcoins.
In the rapidly progressing state of Utah, a bill draft involving the investment of a portion of public funds in Bitcoin has passed the full House and Senate committee review, and now requires completion of the Senate's second reading, third reading, voting, and governor's signature. Since Utah's legislative session is fixed at 45 calendar days, if the bill is passed by the Senate and signed by the governor before March 7, 2025, it will take effect on May 7; otherwise, the bill will expire due to the end of the session.
Regarding investment scope, most states' bills focus on Bitcoin and stablecoins, or ensure that only Bitcoin qualifies by setting a market cap threshold (usually $500 billion or $750 billion). Even if some bills allow other cryptocurrencies to be included in reserves, they are often limited to those obtained through donations. A few states have expanded the investment scope to a broader range of digital assets, such as NFTs and other cryptocurrencies.
In terms of investment ratio, most states set clear limits: most restrict it to within 10% of public funds or specified funds (such as Arizona, Florida, and Michigan), while a few states limit it to 5% (such as Utah and New Mexico). Wyoming had proposed a 3% limit, but the related bill has been vetoed.
To ensure asset security, most states require Bitcoin to be held through secure custody solutions, qualified custodians, or exchange-traded products (ETPs), such as Georgia, New Mexico, and Oklahoma. Additionally, some states (like Arizona, Michigan, and Rhode Island) allow lending of Bitcoin or digital assets to generate additional income without increasing financial risk, reflecting a certain degree of innovative attempts. Most states also establish strict security measures and standards for Bitcoin custody solutions, ensuring multi-party governance, encrypted private key storage, and disaster recovery protocols.
Utah
The Utah State Legislature's Blockchain and Digital Innovation Amendment HB0230 was proposed on January 28, 2025, authorizing the state treasurer to invest a portion of public funds in qualified digital assets (digital assets with an average market value exceeding $500 billion over the past 12 months, currently only Bitcoin meets this standard) or stablecoins, with an investment cap of 5% of designated accounts. Under specific conditions, the draft supports the staking and lending of these digital assets. HB0230 also stipulates that state or local governments cannot prohibit the acceptance of digital asset payments or the use of self-custody/hardware wallet-held assets, and running nodes, developing software, transferring assets, and participating in staking do not require money transmission licenses (if not involving fiat currency). If HB0230 passes, the effective date will be May 7, 2025.
Progress: HB0230 has passed the relevant committee in the House, the full House, and the relevant committee in the Senate, and now requires completion of the Senate's second reading, third reading, voting, and governor's signature.
Arizona
Arizona currently has two strategic Bitcoin reserve drafts, namely SB1025 and SB1373, both initiated by Senate members.
Among them, SB1025 authorizes public funds to invest no more than 10% of the public funds under its control (state treasury and retirement system) in virtual currencies. Additionally, if the U.S. Secretary of the Treasury establishes a strategic Bitcoin reserve for storing government Bitcoin holdings, public funds may store their virtual currencies in a secure segregated account within the strategic Bitcoin reserve.
The SB1373 draft proposes the establishment of a digital asset strategic reserve fund, composed of appropriations from the legislature and digital assets seized by the state. State financial officials should deposit the state's confiscated digital assets into this fund through secure custody solutions provided by qualified custodians or in the form of exchange-traded products issued by investment companies registered in the state. State financial officials may not invest more than 10% of the total deposits in the fund in any fiscal year. If lending does not increase any financial risk to the state, digital assets may be borrowed from the fund to generate additional returns. The digital assets specified in the draft include Bitcoin, stablecoins, NFTs, virtual currencies, etc.
Progress: Both drafts have passed the third reading in the Senate and have been submitted for review in the House.
Texas
Texas currently has two strategic Bitcoin reserve drafts, SB21 and SB778, both proposed by Senator Charles Schwertner. Although the two drafts have similar goals, they differ significantly in details, scope, and implementation methods.
SB21 aims to enhance the state's financial resilience through cryptocurrency investments, hedge against inflation, and accept donations as a supplement, involving the establishment and management of the Texas Strategic Bitcoin Reserve Fund for investing in cryptocurrencies, as well as granting the state auditor (the chief financial officer of the state) investment authority over this reserve fund and certain other state funds. The scope is not limited to Bitcoin but also includes other cryptocurrencies (such as assets obtained through "forks" or "airdrops"). However, there is a rule stating that Bitcoin and other cryptocurrencies purchased or received as donations using reserve funds must have an average market value of at least $500 billion over the last 12 months.
The SB778 draft focuses more on Bitcoin, proposing the establishment of a strategic Bitcoin reserve with the purpose of the state owning and holding Bitcoin as a financial asset, and individuals, including residents of the state, donating Bitcoin to the state to promote shared ownership of the state's financial future and community investment. The draft does not involve actively investing in other assets.
Progress: SB21 is currently being voted on by the relevant committee in the Senate. SB778 has entered the review stage in the state finance committee. Both drafts state that if the bill is passed by a two-thirds vote of all elected members in each chamber, it will take effect immediately. If the bill does not receive the necessary votes for immediate effectiveness, it will take effect on September 1, 2025.
Florida
Florida currently has two Bitcoin reserve drafts (House Bill 487 and Senate Bill 550) entering the committee review stage. Both drafts were introduced in February 2025, stipulating that the state chief financial officer maintains flexibility in certain investment decisions and authorizes investments in Bitcoin and other digital assets from certain public funds to hedge against inflation risks. The investment limit is set at no more than 10% of any account's total funds.
Proposal progress or voting results: Committee review stage.
Illinois
The Illinois Strategic Bitcoin Reserve Bill HB1844 authorizes the establishment of a "Strategic Bitcoin Reserve Fund" within the state treasury as a special fund aimed at holding Bitcoin as a financial asset. It stipulates that state financial officials may accept Bitcoin gifts, grants, and donations from Illinois residents and government entities into the fund. The bill requires that all Bitcoin deposited into the fund be held for at least five years, after which they may be transferred, sold, allocated, or converted into another cryptocurrency.
Progress: HB1844 has been submitted to the House Rules Committee for review.
Ohio
Ohio currently has two Bitcoin or cryptocurrency reserve drafts: House Bill HB18 and Senate Bill SB57. Among them, HB18 is titled the Ohio Strategic Cryptocurrency Reserve Act, allowing the state treasurer to invest certain temporary funds (from the general revenue fund, budget stabilization fund, and the Deferred Prizes Trust Fund established for delayed lottery prize payments) in digital assets, with an investment cap of no more than 10% of the fund's balance. Although the name and provisions of HB18 suggest a broader range of covered digital assets, the bill simultaneously stipulates that qualifying digital assets must have an average market value exceeding $750 billion over the past 12 months. This means that only Bitcoin meets this criterion.
SB57 is titled the Ohio Bitcoin Reserve Act, authorizing the state fund to invest in Bitcoin and requiring government entities to accept cryptocurrency payments. The state treasurer may use temporary state funds and designated donations to invest in Bitcoin, which must be held for at least five years after purchase before any transfer, sale, or conversion can occur.
Progress: HB18 was submitted to the House Technology and Innovation Committee on January 28. SB57 was submitted to the Senate Financial Institutions, Insurance, and Technology Committee on January 29.
Georgia
Georgia introduced its first Bitcoin reserve Senate draft SB178 on February 13, aiming to amend Section 50-17-3 of the Georgia Annotated Code, authorizing the state deposit commission to allow state financial officials to invest in Bitcoin, stipulating that state financial officials may invest no more than 5% of public funds in Bitcoin. Additionally, the proposal specifies that any digital assets obtained under this chapter should be held in the following ways:
Directly through the use of secure custody solutions;
Held by qualified custodians on behalf of the state;
Held in the form of exchange-traded products issued by registered investment companies.
Furthermore, the committee may allow the state treasurer to lend digital assets, provided that such lending does not increase the state's financial risk.
On February 21, Georgia proposed a second Bitcoin reserve draft SB228, which aims to amend Section 50-17-3 of the Georgia Annotated Code, authorizing the state deposit commission to allow state financial officials to invest in Bitcoin; it requires state financial officials to develop policies and procedures for accepting, storing, and trading Bitcoin. Additionally, the proposal removes the investment limit on Bitcoin (no more than 5%) and the rule regarding the lending of digital assets from SB178.
Proposal progress: Both SB178 and SB228 have entered the Senate review stage.
North Carolina
The North Carolina Digital Asset Investment Bill H92 authorizes the state treasurer to invest public funds in digital asset exchange-traded products and digital assets (with an average market value of at least $750 billion over the past 12 months), with an investment cap of 10% for each fund. These public funds include the general fund, highway fund, and highway trust fund, as well as special funds authorized for investment by the state treasurer (such as the teacher and state employee retirement system, merged judicial retirement system, local government employee retirement system, estate fund, state education assistance authority, and state property fire insurance fund).
Progress: H92 has been submitted to the House Commerce and Economic Development Committee.
Michigan
Michigan HB4087 authorizes the state treasurer to invest in cryptocurrencies from the general fund and the "Countercyclical Budget and Economic Stabilization Fund," with an investment cap of 10%. Additionally, the state treasurer may lend cryptocurrencies without increasing the state's financial risk to generate returns. The bill defines cryptocurrencies broadly: digital currencies that use cryptographic technology to regulate the generation of currency units and verify fund transfers, operating independently of central banks.
Progress: HB4087 has been submitted to the House Communications and Technology Committee.
Maryland
The Maryland Strategic Bitcoin Reserve Bill HB1389 authorizes the establishment of the Maryland Bitcoin Reserve Fund, aimed at investing in Bitcoin as a reserve asset for the state, and authorizes the state treasurer to invest funds confiscated from illegal gambling activities into Bitcoin.
Progress: HB1389 is currently still in the committee review stage in the House, primarily reviewed by the Judiciary Committee (with a hearing on March 11), while the Appropriations Committee may also participate (as it was initially submitted to two committees).
Kentucky
Kentucky HB376 authorizes the state investment commission to invest in certain digital assets and precious metals, prohibits investment in central bank digital currencies, authorizes state agencies to accept digital assets and precious metals as payment, prohibits acceptance of central bank digital currencies as payment, requires the Department of Revenue to accept digital assets and precious metals as payment, and requires the state treasurer to transfer certain digital asset deposits into the budget reserve trust fund. In terms of digital asset investments, it supports investing in digital assets with a market value exceeding $750 billion (average market value over the past fiscal year) and those approved by U.S. or state regulatory agencies. Regarding investment limits, the total investment in digital assets, stablecoins, and precious metals must not exceed 10% of the total excess cash investments of the state treasury under subsection (9).
Progress: HB376 has been submitted to the House Banking and Insurance Committee.
Oklahoma
Oklahoma's Strategic Bitcoin Reserve Bill (HB1203) latest revised draft authorizes state financial officials to invest public funds in Bitcoin or any digital asset with an average market value exceeding $500 billion from the previous calendar year, as well as stablecoins, from the following funds: the state general fund; the Revenue Stabilization Fund; and the Constitutional Reserve Fund. The draft also supports using third-party solutions to stake digital assets, and if the draft is passed, it will take effect on November 1, 2025. Any state retirement fund may directly hold digital assets using secure custody solutions, store digital assets with qualified custodians, or invest digital assets in exchange-traded products formally registered with the U.S. Securities and Exchange Commission or the Commodity Futures Trading Commission.
Progress: On February 25, it passed the review of the House Government Oversight Committee.
Iowa
Iowa currently has two drafts SF403 and HF246, submitted by senators and representatives, respectively.
Both drafts allow state financial officials to use public funds from any of the following funds to invest in precious metals, digital assets with an average market value exceeding $750 billion from the previous calendar year, and stablecoins: the state general fund, cash reserve fund, and Iowa Economic Emergency Fund. The investment must not exceed 5% of the total public funds of the fund.
Progress: SF403 and HF246 are currently awaiting review by the Senate State Government Committee.
New Mexico
New Mexico SB275 authorizes the state treasurer and investment committee to invest in Bitcoin from the following funds: the Land Grant Permanent Fund, the Resource Tax Permanent Fund, the Tobacco Settlement Permanent Fund; and any other state fund deemed appropriate by the state investment committee. The investment cap is set at 5%. The bill also supports lending assets without increasing the state's financial risk. The effective date of the bill's provisions is July 1, 2025.
Progress: SB275 is currently awaiting review by the state Senate Taxation, Business, and Transportation Committee.
New Hampshire
New Hampshire HB302 allows the state treasurer to invest public funds in precious metals, digital assets (with an average market value exceeding $500 billion over the previous calendar year), and stablecoins. The bill will take effect 60 days after its passage.
Progress: HB302 is still under review by the House Business and Consumer Affairs Committee, currently advancing discussions through subcommittee work sessions and upcoming executive meetings.
Rhode Island
Rhode Island HB6007 aims to authorize the state treasurer, state employee retirement system, public school employee retirement system, or any other state retirement system to include Bitcoin as a valuable asset to hedge against inflation, thereby protecting the purchasing power of state funds; it allows for flexibility in investment decisions to respond to changing economic conditions and explore emerging opportunities. The state treasurer may invest in Bitcoin or digital assets using unspent, unallocated, or uncommitted funds (from the general fund, budget stabilization reserve fund, and other investment funds directly managed by the state treasurer). The bill defines digital assets as virtual currencies, cryptocurrencies, or native electronic assets, including Bitcoin, stablecoins, NFTs, or other assets that exist in digital form and confer economic, ownership, or access rights.
In a calendar year, the state treasurer's investment in Bitcoin or digital assets must not exceed 10% of the total deposits of the fund at the time of investment, and Bitcoin or digital assets may also be lent to generate additional income without increasing the state's financial risk.
Progress: HB6007 was submitted to the House Finance Committee on February 28.
Missouri
Missouri legislators have currently submitted HB1217 and SB614 related to Bitcoin reserve bills, where HB1217 authorizes the establishment of a Bitcoin Strategic Reserve Fund, allowing the state treasurer to invest, purchase, and hold cryptocurrencies, accept Bitcoin donations, and hold them for at least five years before potentially selling, transferring, or exchanging. SB614 authorizes the state treasurer to use a portion of state funds to invest in stablecoins or qualified digital assets (digital assets with an average market value exceeding $500 billion over the previous 12 months), with an investment cap of 10%.
Progress: The bills have not yet entered the committee review stage.
West Virginia
West Virginia SB465 allows the state government to invest 10% of public funds and public retirement funds in precious metals, stablecoins, and digital assets with a market value exceeding $750 billion.
Progress: The bill has not yet entered the committee review stage.
Massachusetts
Massachusetts SD422 authorizes the establishment of a federal Bitcoin Strategic Reserve, allowing broad investments in Bitcoin or other digital assets. In a fiscal year, the state treasurer's investment in Bitcoin or digital assets must not exceed 10% of the total deposits of the federal stabilization fund allocated by the legislature. The treasurer may also deposit any Bitcoin or other digital assets confiscated by the federal government into the fund. Additionally, Bitcoin or other digital assets may be lent to generate additional income without increasing the federal financial risk.
Progress: The bill has not yet entered the committee review stage.
The Following Bills Were Rejected
Pennsylvania
The Pennsylvania House Strategic Bitcoin Reserve Bill HB2664 was introduced in November 2024, allowing the state treasurer to invest 10% of the Pennsylvania general fund, emergency fund, and state investment fund in Bitcoin and cryptocurrency-based ETPs.
Progress: The bill was rejected at the committee stage. Reasons cited in a prior petition against the bill included harming taxpayer funds, high energy consumption of cryptocurrency mining, and frequent use in illegal activities.
Montana
Montana House Bill 429 was introduced on February 7, 2025, proposing the creation of an inflation protection state special revenue account to invest in precious metals and digital assets. According to the proposal, the investment committee is authorized to invest funds from the inflation protection state special revenue account in precious metals, stablecoins, and digital assets with a market value exceeding $750 billion (based on the average of the previous calendar year), and is authorized to transfer up to $50 million from the general fund to this account before July 15, 2025. Notably, Bitcoin is currently the only digital asset that meets this market value standard.
The proposal defines digital assets as virtual currencies, cryptocurrencies, native electronic assets (including stablecoins and non-fungible tokens), and other assets that exist solely in digital form and confer economic, ownership, or access rights.
Proposal progress or voting results: The House voted against the bill in a second vote, with a final tally of 41 (yes) to 59 (no). The rejection was due to concerns from some legislators about the volatility of digital assets and their impact on taxpayer funds, unwilling to place public funds in high-risk digital investments.
North Dakota
North Dakota HB1184 was introduced on January 31, 2025, involving investments in digital assets and precious metals, stipulating that up to 10% of the funds managed by the "Board of University and School Lands" and "North Dakota Investment Board" may be invested in precious metals, digital assets with an average market value exceeding $500 billion from the previous year, or stablecoins, and that digital assets must be held directly by the board/state retirement and investment office through secure custody solutions, or held on behalf of the state by qualified custodians or exchange-traded products.
Additionally, the bill supports using third-party solutions for staking (provided the state retains legal ownership of the digital assets) and also supports lending digital assets (provided that lending digital assets can increase investment returns without increasing the state's financial risk).
Progress: The House voted against HB1184 in a second reading with 32 votes in favor and 57 votes against.
Wyoming
In January 2025, several legislators in Wyoming proposed a bill HB0201 authorizing state public funds to invest in Bitcoin, specifically authorizing the state treasurer to invest the following funds in Bitcoin:
General Fund: The proportion of the general fund invested in Bitcoin at any time must not exceed 3%;
Wyoming Permanent Mineral Trust Fund: The investment proportion must not exceed 3% of the fund.
Permanent Land Fund: The investment proportion must not exceed 3% of the fund.
The bill also stipulates that the state treasurer should acquire and hold Bitcoin through one or more of the following methods:
Secure custody solutions;
Compliant custodians;
Through holding or owning exchange-traded products issued by investment companies or managers registered under the Investment Advisers Act of 1940.
Notably, if the investment assets appreciate, the state treasurer is not required to sell or reduce investments to comply with the rules; if the investment assets depreciate and fall below the specified investment proportion, investments in Bitcoin may be restored.
Progress: The bill was not passed in the Wyoming House Committee on Minerals, Business, and Economic Development, and subsequently failed to receive the necessary report or advancement before the committee deadline.
South Dakota
South Dakota HB1202 was introduced on February 3, authorizing state public funds to invest in Bitcoin, with the investment proportion not exceeding 10% of the state funds available for investment. Holding methods include direct holding by the state investment committee through secure custody solutions, holding by qualified custodians on behalf of the state investment committee, or holding in the form of exchange-traded products issued by registered investment companies.
Progress: The South Dakota House Business and Energy Committee voted on February 24 to postpone the HB1202 bill for consideration until the 41st legislative day. Since the state legislative session lasts a maximum of 40 days, this decision effectively rejected the bill.
Summary
According to analyst Julian Fahrer, in the first quarter of 2025, 12 states in the U.S. reported a total holding of $330 million in MicroStrategy shares, with these investments primarily held indirectly through pension funds or treasury bonds. Since MicroStrategy is one of the significant holders of Bitcoin, this indicates that some states have begun to invest in Bitcoin indirectly.
Source: Julian Fahrer
Meanwhile, the cryptocurrency reserve bills promoted by various states are becoming a concrete practice of Trump's vision of "building the world's cryptocurrency capital" at the local level.
However, overall, due to legislative processes, risk concerns, and precedents of rejection, the likelihood of most bills passing is low. 2025 may become a turning point for cryptocurrency strategies, but it is more likely to be a situation where only a few states experiment rather than a comprehensive rollout. The final outcome will depend on the legislative progress in the coming months and the specific policy direction of the Trump administration.
According to Grok analysis, Bitcoin reserve bills at the state level are still in the exploratory stage, with a generally low passage rate. In the short term (1-2 years), the likelihood of most states passing such bills is no more than 30%. However, if breakthroughs occur at the federal level (such as the Bitcoin Strategic Reserve Act promoted by Senator Lummis) or if Bitcoin prices stabilize and gain more institutional recognition, state-level legislation may gradually accelerate in the next 3-5 years.
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