United States of Bitcoin? These States Are Considering BTC Reserves

Donald Trump and his political allies are plugging away at plans to stockpile Bitcoin at a nationwide stage within the U.S. Treasury. 

And now, with the asset’s value repeatedly hovering to new peaks since Election Day, some U.S. states are following go well with.  

To this point, 9 states are fielding proposals to determine strategic Bitcoin reserves, whereas digital asset advocates are calling for different native governments to do the identical.

This is which states are contemplating topping up their coffers with the world’s oldest and most precious digital foreign money. 

Texas

Texas legislators will quickly weigh in on whether or not or not they need to set up a strategic Bitcoin reserve. 

Texas State Consultant Giovanni Capriglione proposed a invoice in December 2024 that requires the Lone Star State to create a Bitcoin stockpile. 

The draft laws stipulates that Texas should maintain the Bitcoin for at the very least 5 years. The cryptocurrency have to be stored in chilly storage—that’s, on some form of a tool that isn’t related to the web—and the property can’t be used to make transactions outdoors of Texas, in line with the invoice.

“A strategic Bitcoin reserve aligns with Texas’s dedication to fostering innovation in digital property and offering Texans with enhanced monetary safety,” the invoice reads.

Lastly, the proposal additionally permits Texans to donate to the state’s Bitcoin fund.

Pennsylvania

The Pennsylvania Home of Representatives put forth a invoice in November 2024 that referred to as for the institution of a strategic Bitcoin reserve.

Beneath the Bitcoin invoice, Pennsylvania’s Treasurer would have the ability to purchase Bitcoin with “as much as 10%” of the State Common Fund, Wet Day Fund, and the State Funding Fund.

Tapping 10% of the State Common Fund would enable the Pennsylvania Treasury to buy almost $1 billion price of Bitcoin.  

“Bitcoin, which has appreciated considerably through the years, might help Pennsylvania preserve tempo with inflation and financial change,” the state’s lawmakers stated in a legislative memo printed on November 12. 

Ohio 

Ohio State Consultant Derek Merrin on December 17, 2024 proposed a invoice to set up a strategic Bitcoin reserve within the Buckeye State. 

The Ohio Bitcoin Reserve Act requires the creation of a Bitcoin fund within the state Treasury. It additionally vests Ohio’s State Treasurer with discretionary energy to buy the asset.

“Ohio should embrace know-how and defend tax {dollars} from eroding,” Merrin stated Tuesday in an X submit. 

Though some particulars of how the reserve will work stay unclear, the draft laws is anticipated to function a framework for Ohio lawmakers to construct out in 2025.

New Hampshire

New Hampshire Rep. Keith Ammon set forth a invoice on January 10, 2025 to allow the state’s Treasury to spend money on Bitcoin. Whereas Bitcoin just isn’t talked about by identify within the invoice, it is the one cryptocurrency that may at the moment be eligible primarily based on the excessive market cap necessities.

“We’re tied to the U.S. greenback, whether or not we prefer it or not, however this might enable us to have the state make investments a small portion into this uncorrelated, new asset class,” Ammon advised Decrypt.

Beneath the invoice, New Hampshire’s treasurer would even have the authority to interact in “lending or staking” practices.

“The state that’s final to construct Bitcoin reserves will lose,” Ammon added. “It’s pressing that states act before later, and that takes some schooling on the a part of state officers.”

Wyoming

In January, 5 Republican senators put forth a invoice that may allow Wyoming’s State Treasury to take a position public funds in Bitcoin.

As much as 3% of a number of state funds may very well be invested in Bitcoin, in line with the proposal. These embrace the Wyoming Treasury’s basic fund, the everlasting Wyoming mineral belief fund, and the everlasting land fund.

Beneath the invoice, the Bitcoin could be held by the state treasurer via a safe custody resolution, immediately by a professional custodian, or via investing in an ETF.

Massachusetts

In January, Massachusetts Senator Peter Duran submitted a invoice to determine a strategic Bitcoin reserve within the state’s Treasury.

Beneath the proposal, as much as 10% of Massachusetts’ wet day fund may very well be invested in Bitcoin or one other cryptocurrency. The draft laws requires the tokens to be held via a safe custody resolution, by a professional custodian, or in an ETF issued by an funding firm.

The invoice additionally helps the loaning of that Bitcoin or digital property for the aim of producing further returns for the state, if it may be carried out “with out rising the monetary danger to the commonwealth.”

Oklahoma

Oklahoma Rep. Cody Maynard put ahead a invoice in January that requires the state Treasury to take a position public funds in any digital asset that has averaged larger than a $500 billion market capitalization over the earlier calendar 12 months. The one cryptocurrency that matches that standards, as of this writing, is Bitcoin.

The invoice would additionally enable the state’s treasurer to buy asset-backed stablecoins. Beneath the draft laws, solely as much as 10% of the entire quantity of public funds in a given state account will be invested in digital property, nevertheless.

Utah

Utah joined the rising development on January 20, with Consultant Jordan Teuscher introducing the “Blockchain and Digital Innovation Amendments” invoice (H.B. 230). If handed, it might allow the state treasury to place as much as 10% of its funds in the direction of eligible crypto property, with funds pulled from a number of accounts—together with these tied to catastrophe restoration and Medicaid progress.

Like another payments on this listing, Utah would require an asset to have a market cap of at the very least $500 billion averaged over 12 months—and whereas the invoice would not explicitly point out Bitcoin, it is the one crypto asset that at the moment meets that demand.

Illinois

Rep. John Cabello launched in January a invoice that may set up a strategic Bitcoin reserve fund in Illinois.

The proposal requires Illinois’ State Treasurer to handle the fund, which might maintain Bitcoin deposits for at least 5 years. After that time, the state could be allowed to “switch, promote, acceptable, or convert to a different cryptocurrency any Bitcoin within the fund,” in line with the invoice.

The invoice additionally permits Illinois to simply accept Bitcoin-denominated items, grants, and donations from its residents and governmental entities.

Beneath the draft laws, common audits and biennial stories could be performed. The write-ups would element the entire quantity of Bitcoin within the fund and its U.S. greenback equal, along with disclosing any safety dangers to the reserve

Maryland

Maryland Common Meeting Delegate Caylin Younger has launched a legislative measure calling for the state to arrange a strategic Bitcoin reserve.

If permitted, the Strategic Bitcoin Reserve Act of Maryland would enable the State Treasurer to take a position funds seized from playing violations into Bitcoin, in line with the invoice’s textual content.

Kentucky

Kentucky lawmakers are fielding laws to take a position some public funds into crypto property.

The invoice requires the state to take a position retirement funds into cryptocurrencies with market caps of greater than $750 million — a threshold which solely Bitcoin meets.

The funding could be made immediately by Kentucky’s State Funding Fee or its designee via a safe custody resolution; on behalf of the state by a professional custodian; or within the type of an exchange-traded product.

In the meantime, one other invoice filed in Kentucky seeks to impede the adoption of central financial institution digital currencies, a sort of centrally issued digital token that’s closely opposed by many cryptocurrency aficionados.

Utah

Utah lawmakers are contemplating whether or not to go a invoice that requires the State Treasuer to take a position public funds into digital property.

Beneath the invoice, these funds could be directed into stablecoins or cryptocurrency with a market cap of greater than $500 billion. The one cryptocurrency that presently suits the invoice’s necessities could be Bitcoin, nevertheless.

The draft laws additionally authorizes the State Treasurer to stake and lend digital property below particular circumstances.

To stake crypto, the State Treasurer should retain authorized possession of any property it stakes and conduct the staking via a third-party resolution. In the meantime, the invoice stipulates that the State Treasurer could solely mortgage qualifying digital property that don’t pose monetary danger to the state and complies with a sequence of “guidelines established by the treasurer.”

Whereas the draft laws has handed the Utah Home of Representatives, it nonetheless should clear the Senate. If handed, the invoice would take impact on Might 7, 2025.

New Mexico

On February 4, New Mexico State Senator Anthony L. Thornton launched the Strategic Bitcoin Reserve Act (SB275), which might allocate 5% of public funds to spend money on Bitcoin. If handed, the proposed invoice would take impact on July 1.

Alabama

Alabama State Auditor Andrew Sorrell has championed making a strategic Bitcoin reserve on the state stage.

The framework could be modeled after the federal American Strategic Bitcoin Reserve, Sorrell advised conservative information web site 1819 Information final December. It could name for Alabama to “dollar-cost-average [its] means in over a interval of two years.”

“Bitcoin simply crossed over $100,000 not too long ago, so shopping for right into a bull market might not be one of the best timing,” Sorrell advised the outlet. “A greater technique is month-to-month purchases over a 2-year interval that common out your entry value.”

As of writing time, Alabama lawmakers haven’t filed a invoice to determine a strategic Bitcoin reserve within the state, nevertheless.

Arizona

Arizona lawmakers have superior a invoice that may encourage the state to take a position public funds and pensions in Bitcoin.

Beneath the proposal, Arizona officers are referred to as to “monitor the developments in [spot] Bitcoin exchange-traded funds and different digital asset exchange-traded funds,” and “contemplate the implications of together with such property [and ETFs holding the assets] of their funding portfolios.”

The draft laws additionally requires the a report on the “feasibility, danger and potential advantages of directing a portion of state retirement system monies into digital asset exchange-traded funds.”

Lastly, the report would come with three choices and proposals for a way Arizona may safely spend money on digital property.

Failed laws

North Dakota

North Dakota legislators put forth a decision on January 10, 2025 to take a position chosen state funds in digital property.

No particular property had been talked about within the transient decision, however North Dakota Legislative Council Director John Bjornson advised Decrypt that such definitions could be “extra acceptable for a invoice.”

However that will not be occurring—at the very least for now—because the proposal was rejected on February 4.

Edited by Andrew Hayward

Editor’s observe: This story was initially printed on December 21, 2024 and final up to date with new particulars on February 9, 2025.