The trend of proposing Bitcoin reserves at the state level in the U.S. is facing significant obstacles as numerous states reject related bills. Although more than 20 out of 50 U.S. states have introduced or are considering bills on Bitcoin reserves or digital asset investments, in recent weeks, many states have rejected or stalled the legislative process.
Consecutive proposals have been rejected
Five states – #Montana , South Dakota, North Dakota, Pennsylvania, and Wyoming – have recently rejected bills to invest in Bitcoin.
Montana: House Bill 429, proposing to allocate $50 million from public funds to invest in Bitcoin, stablecoins, and precious metals, was rejected with a vote of 59-41 on February 21.
South Dakota: HB 1202, proposing to allocate a maximum of 10% of public funds to Bitcoin, was rejected by the state Commerce and Energy Committee with a vote of 9-3 on February 24. The main reason for rejection was due to the price volatility risk of Bitcoin.
North Dakota: HB 1184, a bill studying the feasibility of Bitcoin reserves, was also rejected with a vote of 57-32.
Pennsylvania: HB 2664, allowing a maximum investment of 10% of public funds in Bitcoin, was removed from the legislative process.
Wyoming: This state's bill was rejected by the state committee on February 6.
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Influence from national policy
The Bitcoin reserve movement at the state level originated from a proposal by President Donald Trump during last year's election campaign. Trump supported the establishment of a national Bitcoin reserve. Additionally, Wyoming Senator Cynthia Lummis introduced a bill in July 2024 calling for the U.S. government to purchase 1 million Bitcoins over 5 years. However, even with federal support, the Bitcoin reserve proposal at #Wyoming was still not passed.
Some states continue to push for bills
While many states rejected the bills, there are still some places making significant progress:
Utah: The "Blockchain and Digital Innovation Reform" bill (HB 230) was passed by the Tax and Revenue Committee with a vote of 4-2-1 on February 20. If fully approved, the bill will allow the state treasury to invest a maximum of 5% of public funds in Bitcoin.
Texas: Two bills are under consideration, including a proposal allowing the state to invest a maximum of 1% of the general revenue fund in Bitcoin and another bill related to the process of Bitcoin donations and crypto payment conversion.
Oklahoma: On February 25, the state government oversight committee passed the "Strategic Bitcoin Reserve Act" (HB 1203) with a vote of 12-2.
Arizona: The Arizona Senate Finance Committee approved bill SB 1025, allowing a maximum investment of 10% of public funds in digital assets, including Bitcoin. This bill is currently awaiting a vote in the House.
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The Future of Bitcoin in Public Finance
Despite facing many obstacles, the Bitcoin reserve movement continues to grow. Currently, there are 18 related bills awaiting review in states across the U.S. As more states consider integrating Bitcoin into the public financial system, the debate about the benefits and risks of Bitcoin in public investment will continue.
In the near future, the volatility of the crypto market, economic policies, and changes in regulations will continue to affect the fate of these bills. #anhbacong
