Recently, multiple states in the U.S. have intensively passed or reviewed bills related to Bitcoin and digital assets, aiming to integrate them into state financial and legal frameworks to establish so-called 'Bitcoin strategic reserves' or digital asset reserve funds. This trend not only marks broader official recognition of Bitcoin as an emerging asset class but also triggers market reflections on the future changes in Bitcoin's supply and demand dynamics. In this context, Binance founder Zhao Changpeng (CZ) also issued a warning, reminding retail investors that as more government agencies enter the market, their 'window of opportunity' for acquiring Bitcoin at low costs may be closing.
New Hampshire
Dennis Porter, founder of the nonprofit organization Satoshi Action Fund, which is dedicated to promoting Bitcoin legislative frameworks in the U.S., announced that New Hampshire has become the first state in the U.S. to officially pass a Strategic Bitcoin Reserve bill.
The state's governor, Kelly Ayotte, signed a bill numbered HB302, which allows the state treasurer to allocate up to 10% of public funds (the state's general fund and other authorized funds) for investment in precious metals and digital assets with a market value exceeding $500 billion. Currently, only Bitcoin meets this market value threshold. The bill also stipulates that the finance department can either custodian these digital assets itself or entrust them to qualified custodians.
The Satoshi Action Fund drafted the model text of the legislative framework, and New Hampshire's adoption provides a path for financial officers in other states to follow. Dennis Porter remarked, 'The HB302 bill demonstrates that taxpayer money can be protected while embracing the safest currency network on Earth, achieving reserve diversification, and ensuring the future development of the state treasury. New Hampshire has not only passed this bill but has also sparked a revolutionary movement.'
Arizona
Arizona has also made significant progress in Bitcoin legislation. Governor Katie Hobbs signed House Bill HB2749 on May 7, 2025, officially establishing a state-level 'Bitcoin and Digital Asset Reserve Fund.'
It is noteworthy that HB2749 does not authorize new direct investments but primarily focuses on handling unclaimed digital assets. According to the bill, if the digital asset owner does not respond to the state government's communications within three years, the state government can claim ownership of these abandoned digital assets. Once returned to state ownership, these assets can be used for staking or receiving airdrops, with the proceeds deposited into a newly established reserve fund.
However, Governor Hobbs previously vetoed another Senate bill SB1025 (Arizona Strategic Bitcoin Reserve Act) that had more direct investment implications. The bill was originally intended to allow the state government to invest seized and public funds in Bitcoin. Governor Hobbs cited concerns that public funds (particularly investments from state-supported pension systems) would be exposed to volatile and inadequately vetted assets as the reason for the veto.
Nevertheless, crypto advocates remain optimistic about Arizona's prospects, as another more substantive strategic reserve bill, SB1373, has passed the legislature and is currently awaiting the governor's signature or veto. SB1373 proposes the establishment of a digital asset strategic reserve fund managed by the state treasurer, funded by appropriations and seized digital assets, and allows the state government to invest up to 10% of the Budget Stabilization Fund in Bitcoin annually, and to lend digital assets for returns without incurring additional financial risks.
Oregon
Oregon is promoting the integration of cryptocurrency from another angle. Governor Tina Kotek signed Senate Bill SB167, which updates the state's Uniform Commercial Code (UCC) and officially classifies digital assets such as Bitcoin as acceptable collateral for secured loans. The law also recognizes the validity of electronic records, electronic signatures, and mixed transactions, creating a clearer legal pathway for blockchain-based business activities. Market experts believe this move reduces the uncertainty for financial institutions in using cryptocurrencies in loan and credit arrangements, facilitating the adoption of cryptocurrency in Oregon's financial ecosystem and encouraging the development of asset-backed lending products.
Dynamics of other states
In addition to the aforementioned three states, some other states in the U.S. are also actively considering similar strategic crypto plans. For example, Texas' Strategic Bitcoin Reserve Bill (SB21) has passed the Senate and is awaiting a full vote in the House. Illinois, Maryland, and Michigan are also considering similar legislative frameworks. However, not all states' attempts are smooth; for instance, two Bitcoin reserve-related bills in Florida (HB487 and SB550) have failed to progress and have been indefinitely postponed.
Retail investors' 'window of opportunity'
Against the backdrop of increasing interest from governments and large institutions in Bitcoin, Binance founder Zhao Changpeng (CZ) issued a profound warning to retail investors. He believes that as more and more national governments inevitably begin to purchase and reserve Bitcoin, the 'window of opportunity' for ordinary individual investors to accumulate Bitcoin at relatively low costs is gradually closing.
Government scale effects: Once a country begins to seriously consider incorporating Bitcoin into its strategic reserves, the scale of purchases may be enormous, far exceeding the capacity of individual investors.
Demonstration effect and chain reaction: If a major country takes action, other countries are likely to follow suit, triggering a global competition for the limited supply of Bitcoin.
Accelerated entry of institutions: Not only sovereign nations but also large financial institutions, pension funds, endowment funds, etc., are gradually increasing their allocation to Bitcoin.
Scarcity of supply: The total supply of Bitcoin is capped at 21 million, and its scarcity is the core of its value storage function. When demand (especially from large entities) surges, prices will naturally rise.
Zhao Changpeng's warning is not alarmist. The recent positive developments in Bitcoin reserve legislation across various states in the U.S. can be seen as early signals of the trend he predicted. While the current investment scale of state governments may be limited, its symbolic significance and potential demonstration effect should not be underestimated. If this trend spreads from the state level to the federal level and even to other countries, the supply and demand balance of Bitcoin will undoubtedly undergo significant changes.
For retail investors, this means that if they believe in Bitcoin's long-term value, taking action before governments and large institutions enter on a large scale may provide them with a more favorable cost advantage. Once Bitcoin becomes a regular allocation asset for central banks or sovereign wealth funds, its price may rise to levels that deter many retail investors, greatly increasing the threshold for acquiring Bitcoin.
Mainstreaming of Bitcoin
The active progress of several states in the U.S. regarding Bitcoin reserves and related legislation clearly indicates that Bitcoin is accelerating its mainstream adoption process. From being initially viewed as a geek's toy to now being seriously considered by state governments as a strategic reserve asset, Bitcoin's status and recognition have undergone a tremendous transformation.
Behind this trend is the recognition of Bitcoin as a potential hedge against inflation, a means of value storage, and a diversified investment option. State governments hope to protect taxpayer funds from inflation by holding Bitcoin, achieve reserve asset diversification, and adapt to rapidly evolving financial technology innovations.
For the entire cryptocurrency market, government acceptance is undoubtedly a significant positive development, as it helps enhance Bitcoin's legitimacy and credibility, attracting more traditional capital inflows. However, as Zhao Changpeng warned, this may also mean that the window for retail investors to accumulate Bitcoin at low costs is narrowing.
In the future, as more states and even countries begin to explore or implement Bitcoin reserve strategies, the global financial landscape of Bitcoin will undoubtedly be reshaped. Individual investors need to closely monitor these macro-level dynamics, assess their own risk tolerance and investment goals, and make informed decisions in a timely manner. This government-led Bitcoin 'arms race' may just be beginning, and its profound impact on the global financial system and the distribution of personal wealth deserves continued attention and in-depth consideration.