November 17 2025
Several state-level proposals in the US to build up Bitcoin reserves appear to be running into obstacles. Several states have rejected bills that would allow public funds to be invested in the leading cryptocurrency. Of the fifty states, more than half have introduced or are considering legislation around Bitcoin reserves or investments in digital assets, but the outcome of many of these bills remains uncertain.
The situation is clearly multi-layered: while some proposals have made it through and established a framework for state crypto reserves, countless others have fizzled out. Let’s take a look at how these bills have encountered countless stumbling blocks.
Arizona has the “Arizona Strategic Bitcoin Reserve Act,” or SB 1025, made it to the desk of Governor Katie Hobbs, but it was ultimately defeated in May when Hobbs vetoed it. Had the bill passed, the state would have been able to pour up to 10% of its public funds into Bitcoin and other cryptocurrencies. Hobbs wrote in a letter that Arizonans’ pension funds were no place for untested investments like virtual currencies. However, another bill passed that would allow Arizona to create a reserve fund of unclaimed digital assets.
During the aforementioned period, Florida twice repealed bills that would have added Bitcoin to the state’s coffers. Bills HB 487 and SB 550 sought to invest up to 10% of certain public funds in the largest cryptocurrency. Both bills never made it to the House or Senate floors, as they were withdrawn at the end of the legislative session on May 3.
In Oklahoma, the effort to create a Bitcoin reserve failed on April 16, when the Senate defeated the Strategic Bitcoin Reserve Act (HB 1203) by a 6-5 vote. The bill would have allowed the state to invest up to 5% of four different state funds in Bitcoin or other digital assets with an average market cap of more than $500 billion. Currently, Bitcoin alone meets this requirement. Despite the defeat, one representative who had intended to vote “no” changed her vote to support the bill, persuaded by Bitcoin advocates among her constituents.
Utah’s strategic Bitcoin reserve proposal was largely scaled back in March when a key passage that would have allowed the state to establish a reserve was stripped from a blockchain bill. The Blockchain and Digital Innovations Amendment—HB 2030—passed the Utah Senate 19-7 after removing the reserve provision and was ultimately signed by the governor in March.
In New Mexico, SB275, which aimed to invest up to 5% of state funds in Bitcoin, was sidelined again after it was sent to the Senate Taxation, Business and Transportation Committee in early February. The bill’s sponsor indicated that he would bring it up again in the future.
Montana’s proposal, House Bill 429, met a similar fate. The bill, which sought to free up up to $50 million in public funds for Bitcoin, stablecoins and precious metals, failed on a 59-41 vote in the House of Representatives.
South Dakota's HB 1202 rejected the ability to invest 10% of public funds in Bitcoin in a 9-3 vote on February 24. While the bill's sponsor, Representative Logan Manhart, argued that Bitcoin can hold value in inflationary environments, Matt Clark, the state's investment officer, pointed out the volatility of the asset.
In North Dakota, HB 1184, which sought to establish the feasibility of a Bitcoin reserve, failed 57-32 in the House. That doesn’t mean the state is completely closed off to crypto initiatives, however. The legislature is still considering a resolution that would encourage the state’s bailiff and state investment board to invest certain state funds in digital assets and precious metals.
Pennsylvania’s HB 2664, which proposed investing up to 10% of state funds in Bitcoin, was effectively killed. The Republican bill, co-sponsored by Rep. Michael Cabell and Rep. Aaron Kaufer, would have authorized the state’s cryptocurrency depository.
Wyoming’s bill, introduced in January, was defeated by the state committee on Feb. 6. The legislation called for investments from state and permanent funds in Bitcoin. Up to 3% of each of the general funds would be put into the largest digital assets.
While New Hampshire became the first state to pass a strategic Bitcoin reserve bill, there are several others waiting to go through lawmakers’ hands. North Carolina has pushed its Digital Assets Bill through the House, and Texas has SB 21, a bill that would allow the creation of a state Bitcoin trust fund, currently in committee.
Developments are dynamic, with around thirty bills related to state Bitcoin reserves still pending. The future of Bitcoin within the public wallet looks promising, but we are not at the end yet.
Why Have Many Bitcoin Reserve Bills Been Defeated in the US?
Many of these bills have been defeated over concerns about the volatility and untested nature of cryptocurrencies like Bitcoin, especially when it comes to managing sovereign wealth funds.
Are there any states that have already established Bitcoin reserves?
New Hampshire has become the first state to successfully pass a strategic Bitcoin reserve bill.
What can we expect from Bitcoin in government finances in the future?
With approximately thirty bills still pending, we can expect to see more states take steps toward integrating Bitcoin into their financial systems, provided concerns surrounding the risks are adequately addressed.
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