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Florida’s Bitcoin Reserve proposals, HB 487 and SB 550, were withdrawn after a brief period of momentum, ending in a legislative defeat.
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Arizona faced a similar setback as Governor Katie Hobbs vetoed one Bitcoin Reserve bill, although another is still under consideration.
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Despite some active proposals, Utah passed a Bitcoin-focused bill without Bitcoin Reserve language, signaling cautious adoption nationwide.
Recent attempts to establish state-level Bitcoin Reserves have faltered, leaving the future of crypto regulation uncertain across the U.S.
Florida’s Bitcoin Reserve Proposals Fail
Since President Trump first committed to the US Strategic Bitcoin Reserve, several state governments have been pushing their own proposals.
One such Reserve bill in Florida unanimously passed through its first Subcommittee vote less than a month ago, building a sense of momentum. However, these bills were withdrawn today, marking a real defeat.
“Both Florida’s Bitcoin Reserve Bills have failed. The legislature adjourned its 2025 session on May 2, without passage of the bills. HB 487 and SB 550 have been ‘indefinitely postponed and withdrawn from consideration,’” claimed a crypto policy watchdog.
Technically, Florida’s Bitcoin Reserve bills accumulated bipartisan support in their first appearance. This is a critically useful tool for passing crypto-friendly regulation, but Florida’s support was fragile.
Their sponsor, Webster Barnaby, faced overwhelming skepticism at the time. Although he convinced them on the day, his words didn’t carry far.
Unfortunately, Florida is not the only state-level Bitcoin Reserve that has faced recent setbacks. Arizona’s state legislature comfortably passed two such bills in late April, but Governor Katie Hobbs vetoed one of them.
The other might stand a better chance of receiving approval, but there’s no definite way to know. The main difference between the two involves funding.
🇺🇸 State Reserve Race Update:
Both Florida’s Bitcoin Reserve Bills have failed.
The legislature adjourned its 2025 session on May 2, without passage of the bills.
HB 487 and SB 550 have been “indefinitely postponed and withdrawn from consideration.” pic.twitter.com/9TslaU80JW
— Bitcoin Laws (@Bitcoin_Laws) May 5, 2025
As Florida’s Bitcoin Reserve bills quietly died in committee, it’s difficult to analyze a definite reason for their failure. Many state-level bills have been plagued by concern from fiscal conservatives unwilling to invest tax dollars in cryptocurrency.
This belief certainly has bipartisan buy-in; it’s been a feature of questions in Florida, the veto in Arizona, and other failures nationwide.
There are still a few active proposals, but their future is looking increasingly uncertain. The most hopeful prospect, in Utah, did technically become law, but only after shedding all mention of a Bitcoin Reserve.
Utah passed Bitcoin-friendly regulation, but refused this more ambitious task. If these failures continue, it may blunt momentum nationwide.
Arizona’s Bitcoin Reserve Challenges
Following Florida’s setback, attention turned to Arizona, where hopes were similarly dashed. Governor Hobbs vetoed a major Bitcoin Reserve bill, citing fiscal responsibility as her primary concern.
This decision raised alarms among proponents of cryptocurrency, who argue that state-level reserves could stabilize economic volatility.
The remaining bill has generated mixed reactions, as discussions continue about funding and long-term viability. While some lawmakers advocate for the bill’s potential benefits, others echo Hobbs’ fears of overstepping fiscal constraints.
Utah’s Cautious Adoption of Bitcoin Legislation
Despite challenges in states like Florida and Arizona, Utah managed a legislative win by passing cryptocurrency-friendly measures, albeit without Reserve objectives.
This legislation signifies a cautious approach towards crypto adoption, reflecting a blend of opportunity and trepidation among state lawmakers.
With many states still hesitant, Utah’s incremental progress shows a willingness to experiment with blockchain technology while avoiding heavy commitments to state reserves.
Conclusion
The recent setbacks in Florida and Arizona highlight the growing skepticism surrounding state-level Bitcoin Reserves. Despite some incremental legislative victories, the future of cryptocurrency regulation remains tenuous. As more states approach the topic cautiously, legislators must balance innovation with fiscal responsibility to foster a sustainable crypto landscape.
