• Only three states—New Hampshire, Arizona, and Texas—have enacted Bitcoin reserve laws to date.
  • Proposals remain under consideration in 17 states; at least five efforts have failed over financial and political concerns.
  • Most successful laws strictly limit reserves to Bitcoin, with use cases ranging from active purchases to holding seized crypto assets.

As Bitcoin gains ground among corporations and politicians alike, state treasuries across the US are increasingly exploring—and sometimes enacting—laws allowing public funds to be stored in the world’s most valuable digital asset.

Here’s where things stand, as of July 21, 2025.

1. New Hampshire

  • Passed HB 302 in May 2025, making it the first state to sign a Bitcoin reserve law.
  • Permits the state treasurer to invest up to 5% of public funds in precious metals or digital assets with a market capitalization averaging at least $500 billion—effectively, Bitcoin.
  • Funds can be held directly, via a qualified custodian, or through regulated investment vehicles.

2. Arizona

  • Modernised its unclaimed property law in May 2025 with House Bill 2749, allowing the state to retain unclaimed crypto assets in their original form instead of liquidating them.
  • Expands the state’s ability to hold crypto seized via enforcement, though broader reserve strategies were vetoed due to volatility and public fund safety concerns.

3. Texas

  • In June 2025, Texas established the "Texas Strategic Bitcoin Reserve" with Senate Bill 21 and House Bill 4488.
  • Empowers the state comptroller to buy, hold, and manage Bitcoin (and only assets with a $500B+ market cap for 24 months).
  • Offers strong legal protections to make the reserve hard to unwind by future administrations.

States with Pending or Failed Bitcoin Reserve Efforts

  • Legislation Pending:
    17 states—including Alabama, Florida, Georgia, Illinois, Michigan, and Ohio—are actively considering bills for holding Bitcoin in state reserves.
  • Recent Failures:
    Efforts in Montana, North Dakota, Pennsylvania, Wyoming, Utah, and South Dakota have failed amid concerns about price volatility and legal liabilities.

    Some bills were killed outright; in other cases, relevant provisions were stripped before passing.

How the Laws Differ

  • Scope:
    In New Hampshire and Texas, reserves are expressly limited to digital assets meeting strict market cap thresholds—currently, only Bitcoin qualifies.
  • Mechanism:
    States vary: some authorise outright Bitcoin purchases; others focus on holding digital assets seized via enforcement actions.
  • Political Resistance:
    Proposals often spark heated debate, with critics highlighting Bitcoin’s price swings and public fund risk.

Edited by Annette George