tl;dr
Three states—New Hampshire, Arizona, and Texas—have enacted laws permitting Bitcoin reserves, with New Hampshire allowing up to 5% of public funds in Bitcoin and precious metals, Arizona permitting holding seized crypto assets but vetoing broader Bitcoin reserve bills, and Texas establishing a prote...
Three states have enacted laws permitting Bitcoin reserves, while several others have faced setbacks amid concerns about volatility and public fund security. Proposals remain active in 17 states as advocates push for broader adoption of digital assets by public institutions.
New Hampshire led the charge by passing HB 302 in early May, allowing up to 5% of public funds to be invested in precious metals and digital assets, with strict criteria limiting eligible cryptocurrencies to Bitcoin. Governor Kelly Ayotte hailed the legislation as a pioneering move for state innovation.
Arizona’s experience has been more contentious. Although HB 2749 was passed to permit the state to hold seized crypto assets without forced liquidation, two subsequent bills proposing wider Bitcoin reserve measures were vetoed by Governor Katie Hobbs due to concerns over retirement fund risks and law enforcement incentives.
Texas stands out for its assertive stance, with Governor Greg Abbott signing legislation to create a protected Texas Strategic Bitcoin Reserve. This reserve can include Bitcoin and potentially other large-market-cap digital assets acquired by various means, safeguarded against easy legislative reversal.
In contrast, attempts in states such as Montana, South Dakota, North Dakota, Pennsylvania, Wyoming, and Utah have failed or been scaled back. Opposition often revolves around Bitcoin’s price volatility, potential legal challenges, and skepticism about crypto’s stability as a reserve asset.
The debate continues as state legislatures weigh innovation against financial prudence. Will more states embrace Bitcoin reserves, or will caution prevail? The evolving landscape highlights the complex balance between advancing digital finance and safeguarding public resources.