On 02/04/2025, Alabama and Minnesota took a further step towards legalizing Bitcoin as a state reserve asset, with companion bills in both chambers. Minnesota directly mentions Bitcoin, while Alabama sets the criterion that only Bitcoin qualifies. Will these states pave the way for Bitcoin to appear on the state 'balance sheet,' or is this just a passing trend?
Minnesota: The First Bitcoin Act
At #Minnesota , Representative B. Olson (Republican) introduced House Bill 2946 (HF 2946), or the Minnesota Bitcoin Act, on Tuesday (01/04/2025). The corresponding Senate bill, SF 2661, was introduced in March 2025. Both bills are identical, allowing the State Board of Investment to allocate public funds to Bitcoin, recognizing the long-term financial potential of this digital asset.
HF 2946/SF 2661 not only allows the state to invest in Bitcoin but also accepts BTC for tax payments and government transactions. The bill amends more than 12 existing laws, including tax codes, retirement plans, and investment regulations, to integrate cryptocurrency. If passed, the law will take effect from 01/01/2026, marking the first time a U.S. state officially reserves Bitcoin.
Alabama: 'Tailored' Criteria for Bitcoin
At #Alabama , Senator April Weaver (Republican) introduced Senate Bill 283 (SB 283) this week, alongside House Bill 482 (HB 482) introduced since March 2025. Although it does not directly mention Bitcoin, the bill sets the criterion: only digital assets with a market capitalization of at least $750 billion are allowed to be reserved. Currently, only Bitcoin meets this threshold (market cap of $1.7 trillion at $84,900/BTC, according to CoinGecko), while Ethereum ($220 billion) and BNB ($88.5 billion) do not qualify.
The Alabama bill stipulates that digital assets must be held directly by the state treasurer, through a qualified custodian, or via exchange-traded products (ETPs), and cannot exceed 10% of state funds. If passed, the law will take effect from 01/10/2025, making Alabama one of the pioneering states to reserve Bitcoin.
Legislative Strategy: Accelerating Approval
Both Alabama and Minnesota are using a popular legislative strategy: introducing companion bills in both chambers to expedite the approval process. This strategy helps reduce debate time and increase the likelihood of passage, especially as support for Bitcoin in the U.S. is rising (Trump has pledged that 'all remaining Bitcoin will be mined in the U.S.'). However, forecasts from MYRIAD – the decentralized prediction market of DASTAN – show a pessimistic outlook: the majority of users predict that no state will implement Bitcoin reserves (the market closes at the end of March 2025).
Bitcoin Reserve Trend in the U.S.
Alabama and Minnesota are part of a wave of U.S. states exploring Bitcoin as a strategic reserve asset. According to Bitcoin Law, 47 Bitcoin reserve bills have been introduced in 26 states, with 41 bills currently active. Some notable states include:
South Carolina: The bill allows the treasurer to allocate 10% of state funds to Bitcoin.
Oklahoma: Bill HB 1203 (allowing the reserve of digital assets) has been passed by the House, awaiting Senate approval.
Texas: Bill SB 21 establishes a strategic Bitcoin reserve, awaiting the governor's signature.
However, not every state has been successful. Wyoming, Montana, and Pennsylvania have paused or withdrawn their Bitcoin reserve plans, while Utah removed the reserve provision during amendments. Nevertheless, momentum remains strong, with 16 other states (including Arizona and Kentucky) considering similar legal frameworks.
Impact on the Crypto Market
Bitcoin (~$84,900): State reserves could increase long-term demand, but the price is still down 12% in Q1/2025 (Trump tariffs, pessimistic sentiment).
Crypto market: Capitalization down 11.65% ($2.88 trillion), but bills could boost adoption (South Korea $9.8 million, Trump supports crypto).
Investors: State Bitcoin reserves could attract institutional capital, but regulatory risks remain high (SEC has yet to approve a clear legal framework).
Conclusion: Will Bitcoin Make it to the State 'Balance Sheet'?
Alabama and Minnesota are leading the Bitcoin reserve trend in the U.S., with Minnesota directly recognizing BTC and Alabama setting the 'tailored' criteria. If successful, these states could pave the way for Bitcoin to become an official reserve asset, reinforcing the title 'digital gold.' However, with pessimism from MYRIAD and market volatility (Bitcoin down 12%), will these bills pass? As the effective date approaches (10/2025 and 01/2026), the future of Bitcoin in the U.S. will soon be revealed.
Risk warning: Investing in crypto carries high risks due to price volatility and regulatory uncertainty. Please consider carefully before participating.