Author: Decrypt
Translated by: Felix, PANews (This article has been edited)
After several states rejected bills to invest public funds in this leading cryptocurrency, some state-level Bitcoin reserve proposals in the U.S. have encountered obstacles.
Among the 50 states in the U.S., more than half have proposed or are considering legislation related to Bitcoin reserves or digital asset investments, but the outcomes of many of these bills remain uncertain.
Some bills have successfully passed, establishing a framework for state-level crypto reserves, but many bills have also not succeeded. Let’s look at which states have rejected Bitcoin reserve bills.
Florida
In early May, the Sunshine State Florida postponed and withdrew two bills aimed at incorporating Bitcoin into state finances.
House Bill HB 487 and Senate Bill SB 550 both attempt to allocate up to 10% of specific public funds to this top crypto asset, with HB 487 adding all taxes paid in Bitcoin to the general reserve fund it was supposed to create.
Neither of these bills were submitted to the Florida House or Senate for review as they were withdrawn at the end of the legislative session on May 3.
Oklahoma
On April 16, the Oklahoma State Senate Finance and Taxation Committee voted 6 to 5 to reject HB 1203, also known as the Strategic Bitcoin Reserve Act, marking a failed attempt by the state to establish a Bitcoin reserve.
The bill would have allowed the state to allocate up to 5% from four independent state funds to invest in Bitcoin or any other digital asset with an average market value exceeding $50 billion over the past year. Currently, only Bitcoin meets this criterion.
Despite the bill's rejection, a representative who was originally expected to vote against it changed her stance to support it on the day of the vote, stating she was persuaded by constituents who support Bitcoin.
Utah
Although the state's bill has not been rejected or voted down, Utah's plan to establish a strategic Bitcoin reserve fell through in March when a provision that could have allowed the state to create the reserve was removed from a blockchain bill.
The Blockchain and Digital Innovation Amendment (HB 2030) passed the Utah Senate with a vote of 19 to 7 after removing the reserve clause, establishing rights for individuals to operate blockchain nodes and participate in staking. The bill was officially signed by the state governor on March 25.
New Mexico
The SB 275 bill in New Mexico, which aimed to allocate 5% of state financial funds to invest in Bitcoin, was submitted to the Senate Taxation, Business, and Transportation Committee in early February but has been shelved.
According to SourceNM, the bill's sponsor, Republican Anthony Santon, stated he will reintroduce the bill in the future.
Montana
The Bitcoin reserve proposal in Montana, House Bill 429, encountered difficulties after being introduced in late January. The bill aimed to allocate up to $50 million of public funds for Bitcoin, stablecoins, and precious metals.
Although Representative Curtis Schomer supports the bill, believing it would help diversify state assets and potentially yield higher returns, the proposal was rejected in the House on February 21 with a vote of 59 to 41.
South Dakota
The HB 1202 proposal from South Dakota suggested allocating up to 10% of the state's public funds to Bitcoin, but was rejected on February 24 by the House Business and Energy Committee with a vote of 9 against and 3 in favor.
Despite the bill's initiator, Representative Logan Manhart, believing that Bitcoin can preserve value in an inflationary environment, South Dakota investment officials Matt Clark warned about the asset's volatility.
North Dakota
The North Dakota proposal HB 1184 aimed to explore the feasibility of establishing a Bitcoin reserve but failed to pass in the House vote with 57 against and 32 in favor.
However, this does not mean that the 'Peace Garden State' (North Dakota) has completely abandoned efforts related to cryptocurrency. The Legiscan website shows that the North Dakota legislative assembly is still reviewing a resolution proposed by Republicans that encourages the state treasurer and state investment council to allocate some state funds to digital assets and precious metals.
According to state government records, the resolution has passed the second reading in the North Dakota House and will be submitted to the state Senate Industrial and Commercial Committee for further review.
Pennsylvania
The HB 2664 bill in Pennsylvania proposed investing up to 10% of the state's funds in Bitcoin, but the bill was ultimately rejected.
This Republican-led bill, co-sponsored by Representatives Michael Cabell and Aaron Kauff, was first introduced last November. The bill would authorize the Pennsylvania state treasurer to invest in cryptocurrency, allowing public funds to be invested in these digital assets through secure custody solutions or in exchange-traded products tracking the prices of digital assets like Bitcoin.
Wyoming
A bill proposed in Wyoming in mid-January was rejected by the state committee on February 6, with legislative records showing that only one of the eight lawmakers supported the initiative.
The bill calls for investing state government funds and permanent funds in Bitcoin. Under this bill, funds from the general fund, the permanent Wyoming minerals trust fund, and the permanent land fund can be invested in the largest digital assets by market value.
Arizona
Arizona's 'Arizona Strategic Bitcoin Reserve Bill' (SB 1025) made it to Governor Katie Hobbs' desk but ultimately failed as she vetoed the bill in early May.
If the bill is passed, it would allow the Arizona state treasurer to invest up to 10% of state government funds in Bitcoin and other cryptocurrencies. Katie Hobbs wrote in a letter to Arizona Senate President Warren Petersen, 'Arizona's retirement fund is not suitable for the state to attempt untested investments like virtual currencies.' Notably, the Arizona Senate approved the Bitcoin reserve bill SB 1373 and sent it to Governor Katie Hobbs for a final decision.
Despite the SB 1025 bill being rejected, a separate bill was ultimately passed and signed into law a few days later. Legislative records from Arizona show that HB 2749 has been officially signed into law by the governor, marking the establishment of the state's first crypto reserve. This reserve is not for investment but will receive unclaimed virtual assets, airdrops, and staking rewards, and will store them in their native form.
Outlook
Although New Hampshire is the first state to pass a strategic Bitcoin reserve bill, which authorizes the state treasurer to purchase Bitcoin or digital assets with a market value of over $500 billion, setting a holding cap of 5% of total reserve funds, other bills are still awaiting review by legislators in various regions.
The North Carolina House passed the Digital Asset Investment Bill (HB 92), which authorizes the state treasury to invest in qualified digital assets. The earlier version of the bill proposed that investments in digital assets should not exceed 10% of the total fund, but the version ultimately passed by the House adjusted the cap to 5%. The bill has now been submitted for Senate review.
The Texas House committee has passed SB 21, which proposes establishing a state-level Bitcoin reserve. The bill passed with a vote of 9-4, having previously received overwhelming support of 25-5 in the state Senate. If it receives full approval from the House before June 2, it will be sent to Governor Greg Abbott for signing.
Other states, such as Alabama and Minnesota, have also proposed Bitcoin reserve bills but are still far behind in the legislative process.
According to BitcoinLaws data, there are currently about 36 bills related to state Bitcoin reserves still in progress.
Related: New Hampshire signs the first state Bitcoin reserve bill in the U.S., with more crypto legislation poised to emerge, possibly sparking a wave of imitators across states.
