The movement to integrate Bitcoin into public finance across the United States is gaining momentum in 2025, with multiple states advancing legislation to establish strategic Bitcoin reserves. While some proposals have been blocked due to regulatory concerns or political opposition, others are progressing steadily through legislative channels—reflecting a growing recognition of digital assets as a viable component of state-level financial strategy.
At the federal level, former President Donald Trump signed an executive order in March 2025 directing the creation of a national strategic Bitcoin reserve and digital asset inventory. This top-down push has inspired state legislatures to explore similar frameworks, aiming to diversify public funds, hedge against inflation, and position themselves at the forefront of the digital economy.
Despite setbacks—such as Arizona’s recent veto by Democratic Governor Katie Hobbs—many states continue to advance their own Bitcoin reserve initiatives. Below is a comprehensive overview of the current status of state-level Bitcoin legislation across the U.S., categorized by legislative progress.
States with Active Legislative Momentum
Texas: Leading the Charge with Bipartisan Support
Texas stands out as a frontrunner in the race to adopt Bitcoin as a strategic reserve asset. 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 bill proposes allocating $250 million from the Economic Stabilization Fund toward this initiative, with a long-term goal of holding up to $500 billion in digital assets.
Complementing this effort, HB4258 expands authority to local governments, permitting municipalities and counties to invest in crypto—a move that underscores Texas’s comprehensive approach to financial innovation.
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Currently under review by the Government Efficiency Delivery Committee, if passed, these measures will take effect on September 1, 2025. Texas has long supported blockchain innovation: since forming the Texas Blockchain Task Force in 2021, it has attracted major mining operations like Riot Blockchain’s Whinstone facility—the largest single Bitcoin mining site in North America.
Lieutenant Governor Dan Patrick has championed the cause, stating:
“Bitcoin is digital gold. Its limited supply and decentralized nature make it a key asset for Texas’s future.”
With eight crypto-related bills introduced in 2025—including HB4258, HB1598, SB21, and SB778—Texas is clearly positioning itself as a leader in institutional crypto adoption.
Alabama: Targeting Bitcoin Through Market Cap Thresholds
In early April 2025, Republican State Senator April Weaver introduced Senate Bill 283 (SB 283), mirrored by House Bill 482 (HB 482). These bills propose allowing the state treasurer to invest up to 10% of Alabama’s budget in digital assets—but only those exceeding a $7.5 billion market capitalization threshold.
This criterion effectively limits eligible investments to Bitcoin alone, making it the de facto target of the reserve strategy. Investments would be directly managed by the state treasurer and could begin on October 1, 2025, if approved.
Minnesota: A Holistic Approach to Crypto Integration
Representative B. Olson introduced HF 2946, known as the Minnesota Bitcoin Act, on April 1, 2025. Its Senate counterpart, SF 2661, was filed in March. Both bills would empower the State Investment Council to allocate public funds to Bitcoin and allow BTC as legal tender for tax payments and government transactions.
Additionally, the legislation would amend 12 existing laws related to taxation, retirement plans, and investment regulations to formally recognize cryptocurrency within state systems. If enacted, the law would go into effect on January 1, 2026.
Ohio: Long-Term Holding and Public Donations
Senator Sandra O’Brien introduced SB57 on January 28, 2025—the Ohio Bitcoin Reserve Act. It authorizes direct state investment in Bitcoin with a mandatory five-year holding period, promoting long-term financial discipline. The bill also requires state agencies to accept cryptocurrency for payments and allows residents, institutions, and universities to donate Bitcoin to a dedicated reserve fund.
Although referred to the Senate Financial Institutions Committee, the bill remains in committee without further action as of mid-2025.
New Hampshire: Bipartisan Push for a 5% Digital Allocation
Republican Representative Keith Ammon proposed HB302, which has garnered bipartisan support. The bill permits the state treasurer to invest up to 5% of public funds—including the General Fund and Revenue Stabilization Fund—into qualified digital assets or precious metals like gold and silver (originally proposed at 10%, later reduced for risk mitigation).
Passed by the House on April 10, 2025, with a narrow 192–179 vote, the bill is now awaiting further legislative action. State Treasurer Monica Mezapelle has indicated that if signed into law, New Hampshire could launch a pilot program with an initial allocation of $180 million.
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States Where Efforts Have Stalled or Failed
Several states have seen their Bitcoin reserve proposals blocked or indefinitely postponed:
- Arizona: Despite passing both chambers, SB 1373 and SB 1025 were vetoed by Governor Katie Hobbs on May 3, 2025. She cited cryptocurrency as an “unproven investment” with excessive volatility.
- Florida: HB 487 passed an initial committee unanimously but was shelved after the legislative session ended.
- Oklahoma: HB1203 passed the House but was narrowly rejected (6–5) in the Senate Taxation Committee.
- Montana: HB 429 failed its first House vote (59–41).
- Pennsylvania: HB 2664 was effectively terminated during the legislative process.
- North Dakota: A joint proposal lacked specific investment parameters and failed to advance.
- South Dakota: A bill was postponed due to concerns over price volatility and later terminated.
- Wyoming: Despite Senator Cynthia Lummis’s advocacy for HB0201—which proposed investing up to 3% of key funds in Bitcoin via regulated ETFs—the bill stalled and was marked as failed.
Utah’s case is notable: while HB0230 passed and was signed into law on March 25, 2025, it no longer includes provisions for state Bitcoin investment. Instead, it focuses on protecting individual rights related to digital asset custody, mining, staking, and node operation.
Core Keywords
Bitcoin strategic reserve, state cryptocurrency investment, Bitcoin as digital gold, U.S. crypto legislation 2025, government Bitcoin adoption, public fund diversification, blockchain policy
Frequently Asked Questions
Q: Why are U.S. states considering Bitcoin as a reserve asset?
A: States are exploring Bitcoin to diversify public funds, hedge against inflation, reduce reliance on traditional financial systems, and stimulate innovation in blockchain technology and digital finance.
Q: Which state is closest to establishing a Bitcoin reserve?
A: Texas is the most advanced, with SB-21 passing the Senate and HB4258 expanding local investment rights. If both pass, implementation begins September 1, 2025.
Q: Can states legally invest in Bitcoin?
A: Yes—there is no federal prohibition. Each state determines its own investment policies. However, constitutional or statutory constraints may apply depending on fund types and fiduciary duties.
Q: Is there a risk in state governments holding volatile assets like Bitcoin?
A: Yes—volatility is a primary concern cited by opponents. Proponents counter that strategic allocation (e.g., 5–10%) and long holding periods can mitigate risk while offering high long-term returns.
Q: How does federal action influence state-level Bitcoin policy?
A: Trump’s executive order created momentum by legitimizing Bitcoin as a national asset class. This encourages states to act independently while aligning with broader pro-innovation trends.
Q: Could rejected bills be reintroduced in future sessions?
A: Absolutely. Many failed proposals reflect early-stage debate. As institutional adoption grows globally, previously rejected ideas may gain traction in upcoming legislative cycles.
While challenges remain—including regulatory uncertainty and political resistance—the trend is clear: Bitcoin is increasingly viewed not just as speculative tech, but as a legitimate tool for public financial resilience. As more states craft thoughtful frameworks for digital asset integration, the path toward widespread government adoption becomes ever more tangible.
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