April 19, 2026
Many state-level Bitcoin reserve proposals in the US are facing obstacles. Several states have recently rejected bills that would invest public funds in the leading cryptocurrency. Of the fifty states, more than half have introduced or considered legislation regarding Bitcoin reserves or digital asset investments, but the outcome of many of these proposals remains uncertain.
Some proposals have succeeded and laid the foundation for a state crypto reserve, while others have failed before they even get started. Let’s take a look at the recent failures of such legislation.
Arizona has the “Arizona Strategic Bitcoin Reserve Act,” or SB 1025, reached Governor Katie Hobbs’ desk, but it ultimately died when Hobbs vetoed it in early May. Had the bill passed, it would have allowed state recipients to invest up to 10% of the state’s funds in Bitcoin and other currencies. In a letter to the Senate President, Hobbs stated that “Arizona’s pension funds are not the place for the state to make untested investments like virtual currencies.” Despite this setback for crypto promoters, another bill passed that would allow the state to establish a reserve fund of unclaimed digital assets, in line with existing financial products laws.
In Florida, two bills that would have added Bitcoin to the state’s coffers have been advanced and withdrawn from consideration. HB 487 and SB 550 sought to allocate up to 10% of certain public funds to the largest crypto, with HB 487 also adding taxes and fees paid in Bitcoin to the general reserve. Neither bill made it to a vote in either the House or Senate, as they were withdrawn at the end of the legislative session on May 3.
In Oklahoma, an attempt to establish a Bitcoin reserve also failed. On April 16, the Senate Revenue and Taxation Committee voted 6-5 to pass HB 1203, the Strategic Bitcoin Reserve Act. The bill would have allowed the state to invest up to 5% of four different state funds in Bitcoin or other digital assets. So far, only Bitcoin has met the required market cap of over $500 billion over the past year. One representative who initially voted no changed her vote to “yes” on the day of the vote, persuaded by Bitcoin-supporting voters.
While Utah’s proposal for a strategic Bitcoin reserve was not vetoed or defeated, it was killed in March when a provision that would have allowed for the creation of a reserve was removed from blockchain legislation. The Blockchain and Digital Innovations Amendment – HB 2030 – passed the Utah Senate 19-7 after the provision was removed, and it addresses the rights of individuals to operate blockchain nodes, participate in staking, and more.
New Mexico’s SB275, which aimed to invest up to 5% of the state’s coffers in Bitcoin, was introduced in the Senate Tax, Business and Transportation Committee in February but failed to advance beyond that. The bill’s sponsor, Republican Anthony Thornton, indicated he would reintroduce the proposal in the future.
Montana’s Bitcoin reserve proposal, House Bill 429, failed in January. The bill sought to allocate up to $50 million of public funds to Bitcoin, stablecoins, and precious metals. Despite advocates from Representative Curtis Schomer to diversify the state’s assets and potentially generate higher returns, the bill failed in a 59-41 vote in the House of Representatives on February 21.
South Dakota's HB 1202, which sought to invest up to 10% of public funds in Bitcoin, was defeated by the House Committee on Commerce and Energy on February 24 by a vote of 9-3. While the bill's sponsor, Representative Logan Manhart, argued that Bitcoin can hold value in inflationary environments, South Dakota's state investment officer warned against the volatility of the assets.
In North Dakota, a bill, HB 1184, that would explore the feasibility of a Bitcoin reserve failed on a 57-32 vote. That doesn’t mean the state has completely abandoned crypto initiatives, however. The North Dakota Legislature is still considering a Republican resolution that would encourage the state’s receiver and State Investment Board to invest certain state funds in digital assets and precious metals.
Pennsylvania’s HB 2664, which sought to invest up to 10% of state funds in Bitcoin, has been effectively killed. Introduced in November, the Republican-led bill would have authorized the Pennsylvania State Collector to invest in cryptocurrencies, with public funds safely held in digital assets.
Wyoming’s bill, introduced in January, was defeated by the state’s committee on Feb. 6, with only one of eight lawmakers supporting the initiative. The legislation sought to invest state and permanent funds in Bitcoin. Up to 3% of each of the general fund, the permanent Wyoming mineral trust and the permanent land funds could have been put into the largest digital assets.
While New Hampshire was the first state to pass a strategic Bitcoin reserve bill, a handful of others continue to circulate across the country. North Carolina has pushed its Digital Assets Bill through the House and sent it to the Senate for debate. Texas currently has SB 21, a bill that would allow a state-managed investment fund for Bitcoin and other cryptocurrencies, in committee for further consideration. Other states like Alabama and Minnesota have introduced Bitcoin reserve bills but are much further back in the legislative process. In total, there are approximately 30 bills regarding state Bitcoin reserves still pending.
Why Have Many Government Proposals for Bitcoin Reserves Failed?
Many proposals fail due to political objections, concerns about Bitcoin's volatility, and the inability of lawmakers to reach consensus on the risks associated with investing public funds in cryptocurrencies.
Are there any states that have approved Bitcoin reserves?
Yes, New Hampshire is an example of a state that successfully passed a strategic Bitcoin reserve bill. Developments in other states will have to be watched in the future.
What are the main concerns when using public funds for Bitcoin investments?
The main concerns are Bitcoin's volatility, the risks of untested investments, and the impact on citizens' pension funds, which often makes governors and legislators cautious.
Bitcoin (BTC)
Ethereum (ETH)
XRP (XRP)
