U.S. States Push for Bitcoin Reserves Amid Growing Crypto Adoption

Sixteen states explore legislation to integrate Bitcoin into public funds.

As Bitcoin’s price soars in early 2025, sixteen U.S. states are actively considering legislation to establish strategic Bitcoin reserves or allow cryptocurrency investments for public funds. This trend signals a growing recognition of digital assets’ role in state-level financial strategies.

Leading the charge is Texas, with the Texas Strategic Bitcoin Reserve Act referred to the Senate Finance Committee on February 7. The bill outlines guidelines for state Bitcoin ownership and even allows Texas residents to donate Bitcoin to support the state’s financial initiatives. Oversight would fall under the Texas Comptroller’s Office, with strict requirements for cold storage, regular audits, and restrictions against acquisitions from foreign entities or those linked to illegal activities.

Pennsylvania introduced a similar bill in November 2024, proposing that up to 10% of the State General Fund, Rainy Day Fund, and State Investment Fund be allocated to Bitcoin. This could translate to nearly $1 billion in Bitcoin purchases if the legislation passes.

Ohio joined the movement in December 2024, with Representative Derek Merrin introducing the Ohio Bitcoin Reserve Act. This legislation would create a dedicated Bitcoin fund within the state treasury, granting the State Treasurer discretionary authority to manage Bitcoin acquisitions.

In New Hampshire, Representative Keith Ammon proposed legislation in January 2025 that, while not mentioning Bitcoin directly, sets high market capitalization requirements—thresholds currently met only by Bitcoin. The bill would also authorize the state treasurer to engage in lending or staking activities.

Wyoming’s proposal, supported by five Republican senators, would allocate up to 3% of several state funds to Bitcoin, with mandates for secure custody through qualified custodians or ETFs. Meanwhile, Massachusetts Senator Peter Duran’s bill seeks to invest up to 10% of the state’s rainy day fund in Bitcoin and other cryptocurrencies, with provisions for lending digital assets to generate additional returns.

Oklahoma’s bill, introduced by Representative Cody Maynard, includes a $500 billion market cap requirement for eligible digital assets, limiting crypto investments to 10% of total public funds in any state account. Utah’s "Blockchain and Digital Innovation Amendments" bill has advanced the furthest, having passed the House of Representatives and awaiting Senate approval. This bill would permit up to 10% of state funds to be invested in eligible crypto assets.

Illinois Representative John Cabello’s bill proposes establishing a Bitcoin reserve fund managed by the State Treasurer, with a minimum five-year holding period for Bitcoin deposits. Regular audits and biennial reporting are key features of the legislation.

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

New Mexico’s Strategic Bitcoin Reserve Act, introduced recently, proposes allocating 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 formal legislation has not yet been introduced.

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

North Dakota became the first state to reject such legislation, with its resolution failing on February 4, 2025. The proposal lacked detailed implementation plans, which may have contributed to its failure.

Most state proposals include stringent requirements for cold storage, security protocols, and regular audits. Investment limits typically range from 3% to 10% of state funds, with many bills focusing on high market capitalization assets—criteria currently met exclusively by Bitcoin.

photo source / Blockonome