A Surge in Bitcoin Reserve Proposals Faces Challenges

A surge of state-level Bitcoin reserve proposals across the U.S. has hit a roadblock, with multiple states rejecting bills to invest public funds in the leading crypto.

Current Status

Of the 50 U.S. states, over 20 have introduced or are considering legislation related to Bitcoin reserves or investments in digital assets, but the fate of many of these bills remains uncertain.

Recently, states including Montana, South Dakota, North Dakota, Pennsylvania, and Wyoming faced setbacks regarding Bitcoin reserve initiatives.

Montana

Montana’s Bitcoin reserve proposal, House Bill 429, faltered after its introduction in late January, aiming to allocate up to $50 million in public funds for Bitcoin, stablecoins, and precious metals. The proposal failed in a 59-41 vote on February 21, despite Representative Curtis Schomer’s arguments for diversification and higher returns.

South Dakota

South Dakota’s HB 1202, proposing to allocate up to 10% of state public funds into Bitcoin, was rejected by the House Commerce and Energy Committee in a 9-3 vote on February 24. While Representative Logan Manhart supported Bitcoin as a value-preserving asset, State Investment Officer Matt Clark cautioned against its volatility.

Other States

Pennsylvania, North Dakota, and Wyoming also encountered difficulties. North Dakota’s HB 1184 aimed to explore Bitcoin reserves but failed with a vote of 57-32. Pennsylvania’s HB 2664, proposing a 10% investment in Bitcoin, was killed, and Wyoming’s bill was rejected on February 6.

National Perspective

The movement for Bitcoin reserves at the state level follows the endorsement of a national Bitcoin stockpile by U.S. President Donald Trump during his campaign. Wyoming Senator Cynthia Lummis introduced a bill in July 2024 for the U.S. government to purchase 1 million Bitcoin over five years for a national strategic reserve, yet her state’s proposal faces hurdles.

Looking Ahead

Despite resistance in some states, Bitcoin reserve proposals progress elsewhere. Utah is advancing its Blockchain and Digital Innovation Amendments bill, passing a critical subcommittee vote to allow up to 5% of public funds to be allocated to digital assets, with Bitcoin as the primary candidate.

Texas is also making headway with two Bitcoin-related bills, one permitting up to 1% of general revenue to be allocated to Bitcoin and another addressing donations and crypto payment conversions.

On February 25, the Oklahoma House Government Oversight Committee advanced the Strategic Bitcoin Reserve Act with a 12-2 vote. Arizona’s Senate Finance Committee has advanced a bill proposing up to 10% of public funds, including pensions, to be invested in cryptocurrencies.

With 18 bills currently pending across various states, the movement for state Bitcoin reserves remains alive as lawmakers consider the potential of digital assets in public finance.