- Five U.S. state initiatives to establish cryptocurrency reserves have failed, while Utah remains one senate vote away from approving investment of up to 5% of certain public funds in digital assets.
- Texas has advanced a crypto reserve bill out of committee, joining the race of states attempting to beat the federal government in establishing digital asset holdings.
- Bitcoin’s price decline from $106,000 to approximately $86,000 and the recent Bybit exchange hack may have dampened enthusiasm for state-level cryptocurrency investments.
The rush by U.S. states to invest public funds in cryptocurrencies before federal action has yielded mixed results, with five state initiatives failing while Utah stands on the brink of approval. The push comes amid ongoing discussions about a federal strategic digital assets reserve, championed by Senator Cynthia Lummis and advocated by MicroStrategy‘s Michael Saylor, with support from President Trump.
Pennsylvania, Wyoming, Montana, South Dakota, and North Dakota have all fallen short in their legislative attempts to establish state-level cryptocurrency investments. Both Montana and North Dakota saw their bills explicitly rejected by their respective legislatures, while the other three states’ initiatives died in committee stages.
Utah has made the most significant progress, with legislation permitting investment of up to 5% of certain public accounts in cryptocurrencies clearing the state house and a senate committee. The bill now awaits consideration by the entire senate, though final passage remains uncertain.
Dennis Porter, CEO of the Satoshi Action Fund, which has advocated for state Bitcoin reserves, acknowledged the challenges in the legislative process. “Although Utah seems best positioned to finalize its bill first, nothing is guaranteed,” Porter said. “It’s a dynamic process.”
Porter has noted on social media platform X that most bills will fail, describing this as “normal” for legislative processes. His organization plans to continue pursuing these initiatives annually, viewing states as “laboratories of democracy.”
Meanwhile, Texas, a significant bitcoin mining hub, has reportedly advanced a bill to its state Senate for consideration. The crypto reserve bill moves forward as various states pursue different approaches to cryptocurrency integration.
Recent market conditions may have dampened enthusiasm for state-level cryptocurrency investments. Bitcoin’s price has dropped from a post-election high of $106,000 to approximately $86,000, while a high-profile hack at Bybit exchange resulted in the largest cryptocurrency theft to date.
“That sense of urgency appears to have abated now,” said Johnny Garcia, a managing director at VeChain Foundation who has been monitoring state initiatives. “My view is states have some breathing room to assess and to contemplate a way forward.”
Some states are pursuing alternative approaches to blockchain integration. Indiana is considering legislation for blockchain-based government efficiency improvements, while Arizona is advancing a technical bill that would maintain unclaimed cryptocurrency property in its original form rather than converting it to cash.
Even in North Dakota, where the reserve initiative failed, the state house approved a resolution encouraging its treasurer to invest certain state funds in digital assets. This resolution is currently under consideration by the state senate.
Garcia predicts a more gradual approach to state cryptocurrency adoption, suggesting that “many of these states will likely authorize digital assets as part of their state pension and investment options before moving toward more aggressive digital asset reserves.”
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