• New Hampshire becomes first state to enact Bitcoin reserve legislation in May 2025.
• Arizona creates digital assets reserve fund for unclaimed cryptocurrency holdings.
• Texas advances closest to full approval with Senate bill passing House committee.
• Multiple states including Pennsylvania, Wyoming, and Oklahoma reject Bitcoin proposals.
• Wisconsin and Michigan already invest state pension funds in Bitcoin ETFs.

The movement to establish strategic Bitcoin reserves at the state level has gained significant momentum across the United States, with two states successfully enacting legislation and more than 20 others actively considering similar measures.

According to multiple legislative tracking sources, this represents the largest coordinated effort by state governments to integrate cryptocurrency into public finance strategies since Bitcoin’s creation in 2008.

New Hampshire Leads the Way

New Hampshire made history on May 6, 2025, when Governor Kelly Ayotte signed House Bill 302 into law, making it the first state to create a strategic Bitcoin reserve. The legislation allows the state treasurer to invest in digital assets with a market capitalization exceeding $500 billion, which currently only Bitcoin meets.

“New Hampshire is once again First in the Nation! Just signed a new law allowing our state to invest in cryptocurrency and precious metals,” Governor Ayotte announced on social media, according to Bitcoin Magazine reporting.

Representative Keith Ammon sponsored the bill and several other Bitcoin-related measures working through the state legislature. The law permits the state to allocate up to 5% of public funds into qualifying digital assets.

Arizona Creates Digital Assets Reserve

Arizona Governor Katie Hobbs signed House Bill 2749 into law in May 2025, establishing the state’s Bitcoin and Digital Assets Reserve Fund. However, this legislation takes a different approach than New Hampshire’s direct investment strategy.

The Arizona law focuses on managing unclaimed digital assets that have been abandoned for three years or more. The state considers digital assets abandoned when owners have not accessed their accounts, conducted transactions, or acted on related accounts held by the same owner.

This signing came after Governor Hobbs vetoed Senate Bill 1025 on May 2, which would have allowed the state treasurer and retirement system to invest 10% of available funds in virtual currencies.

Texas Advances Toward Approval

Texas has emerged as a frontrunner with multiple active Bitcoin reserve bills. Senate Bill 21, which would establish a state-managed Bitcoin reserve, passed its third reading in the House with a 101-42 vote on May 21, according to CCN reporting.

The legislation is now one step away from becoming law. Texas Lieutenant Governor Dan Patrick has listed a “Texas Bitcoin Reserve” among his top 40 legislative priorities for 2025.

State Senator Charles Schwertner, who introduced related legislation on January 16, wrote that a Texas Bitcoin Reserve would position the state as a leader in the digital economy while fostering growth and securing economic freedom.

Utah Progresses Through Legislature

Utah’s House Bill 230, titled the “Blockchain and Digital Innovation Amendments,” passed the House of Representatives and awaits Senate approval. The bill would enable the state treasury to invest up to 10% of funds in eligible crypto assets, drawing from multiple accounts including disaster recovery and Medicaid growth funds.

Representative Jordan Teuscher introduced the legislation on January 20. The bill requires assets to have a market cap of at least $500 billion averaged over 12 months, effectively limiting investments to Bitcoin under current market conditions.

Ohio Proposes Strategic Reserve

Ohio State Representative Derek Merrin proposed the Ohio Bitcoin Reserve Act on December 17, 2024. The legislation calls for creating a Bitcoin fund in the state Treasury and grants Ohio’s State Treasurer discretionary power to purchase the asset.

“Ohio must embrace technology and protect tax dollars from eroding,” Merrin stated in a social media post, according to Decrypt reporting.

House GOP Majority Whip Steve Demetriou has proposed separate legislation to allocate up to 10% of state-controlled funds toward a Bitcoin reserve, emphasizing that Bitcoin could leverage Ohio’s natural gas reserves to meet energy demands.

Pennsylvania’s Early Efforts Stall

Pennsylvania introduced one of the first Bitcoin reserve bills in November 2024. The Bitcoin Strategic Reserve Act would have allowed the state to allocate up to 10% of its general, investment, and rainy day funds to Bitcoin.

However, the bill failed to pass the committee review process and is considered dead, according to CCN reporting. The measure had generated significant discussion and public interest before stalling in the legislative process.

Illinois Proposes Strategic Fund

Representative John Cabello introduced legislation in January to establish a strategic Bitcoin reserve fund in Illinois. The proposal calls for the Illinois State Treasurer to manage the fund, which would hold Bitcoin deposits for a minimum of five years.

The bill allows Illinois to accept Bitcoin-denominated gifts, grants, and donations from residents and governmental entities. After five years, the state would be permitted to transfer, sell, appropriate, or convert Bitcoin in the fund to another cryptocurrency.

Massachusetts Eyes Rainy Day Fund

Massachusetts Senator Peter Duran submitted a bill in January to establish a strategic Bitcoin reserve in the state’s Treasury. The proposal would allow up to 10% of Massachusetts’ rainy day fund, valued at $8.8 billion, to be invested in Bitcoin or other cryptocurrencies.

The legislation requires tokens to be held through secure custody solutions, qualified custodians, or exchange-traded funds issued by investment companies.

North Dakota Explores Digital Assets

North Dakota legislators introduced Resolution 3001 in January, proposing to invest state funds in digital assets and precious metals. While less specific than formal legislation, it represents a step toward exploring Bitcoin’s role in the state’s treasury.

Representative Nathan Toman also backs additional bills to protect the rights of Bitcoin miners and support cryptocurrency-related activities within the state.

New Mexico Proposes Five Percent Allocation

New Mexico State Senator Anthony Thornton introduced the Strategic Bitcoin Reserve Act (SB275) on February 4, which would allocate 5% of the state’s public funds to Bitcoin investments. The proposed bill would take effect on July 1 if passed.

Michigan Advances Multiple Bills

Michigan has introduced four bills to advance Bitcoin adoption and protect digital asset rights. The first bill would allow Michigan’s state retirement fund to invest in Bitcoin, marking a significant shift toward institutional crypto exposure.

The Michigan State Retirement System already disclosed owning 110,000 shares of the ARK 21Shares Bitcoin ETF, valued at approximately $6.6 million as of June 2024, according to SEC filings.

Missouri Considers Strategic Reserve Fund

Missouri Representative Ben Keathley introduced House Bill 1217 to establish a Bitcoin Strategic Reserve Fund that would allow the state treasurer to invest in qualifying digital assets.

Iowa Introduces Investment Legislation

Iowa State Representative Taylor Collins introduced a bill to invest public money in Bitcoin and digital assets, joining the growing list of states considering cryptocurrency integration into public finance.

North Carolina Plans Digital Asset Investments

North Carolina has introduced the NC Digital Assets Investments Act, allowing the state to invest in digital assets through exchange-traded products. This follows earlier efforts in 2023 when the lower house approved a study to assess incorporating Bitcoin into state holdings.

Maryland Explores Strategic Reserve

Maryland General Assembly Delegate Caylin Young has introduced a legislative measure calling for the state to establish a strategic Bitcoin reserve, though specific details about allocation percentages remain unclear.

Kentucky Enacts Digital Asset Protections

Kentucky Governor signed House Bill 701 into law on March 24, 2025, providing definitions and protections for individuals and businesses engaging with digital assets. While not establishing a reserve fund, the legislation creates a regulatory framework for digital asset activities.

Indiana and Kansas Consider Options

Both Indiana and Kansas are among states weighing various versions of cryptocurrency bills, according to CoinDesk reporting, though specific legislative details have not been publicly disclosed.

Alabama Advocates for Strategic Reserve

Alabama State Auditor Andrew Sorrell has championed creating a strategic Bitcoin reserve at the state level. The framework would be modeled after the federal American Strategic Bitcoin Reserve.

“Bitcoin just crossed over $100,000 recently, so buying into a bull market may not be the best timing,” Sorrell told 1819 News in December. “A better strategy is monthly purchases over a 2-year period that average out your entry price.”

States Reject Bitcoin Reserve Proposals

Several states have rejected or failed to advance Bitcoin reserve legislation despite initial interest.

Oklahoma saw its House pass Strategic Bitcoin Reserve Bill (HB 1203) in a 77-15 vote, but the legislation failed in the Senate Revenue and Taxation Committee by a narrow 6-5 margin.

Wyoming legislators filed a bill in January to invest up to 3% of state funds in Bitcoin, but it failed committee review with only one lawmaker supporting it.

Montana introduced a Bitcoin reserve bill proposing up to $50 million in investments across Bitcoin, digital assets, stablecoins, and precious metals. While passing committee review, it failed to secure enough votes in the first chamber.

South Dakota Representative Logan Manhart’s proposed Bitcoin reserve bill failed to pass committee review and is officially dead.

Pennsylvania’s November 2024 Bitcoin Strategic Reserve Act failed to pass committee review despite generating significant public discussion.

Florida has postponed both Bitcoin reserve bills indefinitely, with CFO Jimmy Patronis’s earlier feasibility study requests not advancing to formal legislation.

North Dakota initially introduced three Bitcoin and crypto investment bills, with two failing and one remaining under committee review.

Pension Funds Already Investing

Wisconsin and Michigan have already moved ahead without specific legislation. The State of Wisconsin Investment Board held 3.1 million shares of BlackRock’s iShares Bitcoin Trust, worth approximately $588 million as of Q4 2024.

Michigan’s State Retirement System disclosed owning Bitcoin ETF shares valued at $6.6 million, making it among the first state pension systems to gain cryptocurrency exposure through traditional investment vehicles.

Market Impact and Analysis

Investment management firm VanEck estimates that if current state Bitcoin reserve bills are enacted, states could collectively acquire around 247,000 BTC, valued at approximately $23.7 billion at current prices.

The legislative momentum follows President Trump’s executive order establishing a federal digital asset working group to explore a strategic Bitcoin reserve. The federal initiative provides additional context for state-level efforts to integrate cryptocurrency into public finance strategies.

According to Bitcoin Laws, a legislative tracking website, 36 Bitcoin reserve bills remain active across 19 states as of May 2025, with legislative calendars creating time pressure for remaining proposals.

The state-level movement represents a significant shift in how public institutions view cryptocurrency, with supporters citing inflation hedging and portfolio diversification as primary motivations for Bitcoin integration into government finance strategies.

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