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Several U.S. states are actively pursuing legislation to enable their treasuries to hold Bitcoin, signaling a growing institutional acceptance of digital assets.
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While New Hampshire, Arizona, and Texas have made significant strides, many other states face political and financial hurdles in establishing Bitcoin reserves.
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According to Bitcoin Reserve Monitor, legislative efforts vary widely, with some states focusing on direct Bitcoin purchases and others on retaining seized digital assets.
U.S. states like New Hampshire, Arizona, and Texas lead the way in Bitcoin reserve legislation, while others struggle amid political resistance and financial concerns.
New Hampshire Leads with Pioneering Bitcoin Reserve Legislation
New Hampshire became the first state in the U.S. to formally authorize a Bitcoin reserve with the passage of HB 302 in early May 2025. Signed by Governor Kelly Ayotte, the law permits the allocation of up to 5% of public funds into precious metals and digital assets that meet stringent criteria. Specifically, digital assets must have maintained an average market capitalization of at least $500 billion over the past calendar year, effectively limiting eligibility to Bitcoin alone. This legislation represents a bold step toward integrating cryptocurrency into state financial portfolios, reflecting a broader trend of institutional adoption. Governor Ayotte emphasized the state’s innovative approach, stating, “New Hampshire is once again first in the nation!” The law also provides flexibility in custody options, allowing reserves to be held directly, through qualified custodians, or regulated investment vehicles, ensuring security and regulatory compliance.
Arizona’s Mixed Progress and Legislative Challenges in Bitcoin Adoption
Arizona’s journey toward establishing Bitcoin reserves has been marked by both progress and setbacks. In May 2025, the state updated its unclaimed property laws through HB 2749, enabling the retention of crypto assets in their original form rather than liquidating them. This change allows Arizona to hold seized or forfeited Bitcoin, creating a de facto reserve from enforcement actions. However, broader ambitions to allocate state funds into digital assets have met resistance. Governor Katie Hobbs vetoed two key bills—SB 1025 and HB 2324—that would have expanded Bitcoin holdings to include retirement funds and created a dedicated Bitcoin reserve fund. Hobbs cited concerns over the risk of untested investments and potential disincentives for local law enforcement cooperation. These vetoes highlight the cautious approach some states are taking amid ongoing debates about cryptocurrency’s volatility and regulatory implications.
Texas Establishes a Robust Strategic Bitcoin Reserve
Texas has emerged as one of the most assertive states in adopting Bitcoin reserve legislation. In June 2025, Governor Greg Abbott signed Senate Bill 21 and House Bill 4488, creating the Texas Strategic Bitcoin Reserve with strong legal protections to safeguard the fund from future legislative changes. The law allows Bitcoin—and potentially other digital assets meeting a market capitalization threshold of $500 billion over 24 months—to enter the reserve through various means, including purchases, forks, airdrops, or donations. This comprehensive framework positions Texas as a leader in state-level cryptocurrency adoption, reflecting confidence in Bitcoin’s long-term value and institutional viability. The legislation’s design ensures that the reserve is both flexible and secure, providing a model for other states considering similar initiatives.
States Facing Resistance and Legislative Failures in Bitcoin Reserve Efforts
Despite the successes in New Hampshire, Arizona, and Texas, several states have encountered significant obstacles in their attempts to establish Bitcoin reserves. Montana’s House Bill 429, which proposed allocating up to $50 million into a mix of crypto, stablecoins, and precious metals, failed to advance due to insufficient support. Similar efforts in North Dakota, Pennsylvania, Wyoming, and South Dakota also stalled or were defeated, often citing concerns over Bitcoin’s price volatility, potential legal risks, and doubts about crypto’s suitability as a reserve asset. In Utah, blockchain-friendly legislation passed in March 2025, but provisions authorizing Bitcoin reserves were removed during the legislative process. These outcomes underscore the varied political and financial climates across states, with some lawmakers prioritizing caution over rapid adoption.
Conclusion
The evolving landscape of Bitcoin reserve legislation across U.S. states illustrates a complex interplay of innovation, risk management, and political will. While New Hampshire, Arizona, and Texas have charted paths toward integrating Bitcoin into public finance, many other states remain hesitant due to volatility concerns and regulatory uncertainties. As digital assets continue to mature, state-level initiatives may serve as important test cases for broader institutional adoption. Stakeholders should monitor these developments closely, as they could influence future policy and investment strategies in the cryptocurrency sector.
