More U.S. states are advancing legislation to establish strategic Bitcoin reserves, reflecting a growing interest in integrating digital assets into state financial strategies. While Utah remains a frontrunner, several states have introduced or progressed Bitcoin reserve bills, signaling a shift toward state-backed cryptocurrency investments.
Quick Take
-
Utah leads the charge with its Bitcoin reserve bill passing a key committee vote, positioning it as the most likely state to implement a reserve first.
-
Illinois and Arizona are among the most advanced in their legislative processes, with structured plans for Bitcoin reserves.
-
Texas, Pennsylvania, and New Hampshire are pushing forward with Bitcoin reserve bills, with varying strategies on allocation and duration.
-
States like Florida, Alabama, and Montana are exploring potential Bitcoin reserves but have yet to introduce formal legislation.
-
Federal discussions on Bitcoin reserves continue, with Senator Cynthia Lummis advocating for a national reserve.
Utah's Bitcoin Reserve Bill: A Step Closer to Approval
Utah has made significant progress toward establishing a Bitcoin reserve. On January 28, its House Economic Development Committee voted 8-1 in favor of allowing state treasurers to allocate up to 5% of public funds to Bitcoin, stablecoins, and other cryptocurrencies with a market cap above $500 billion.
According to Satoshi Action Fund CEO Dennis Porter, Utah's 45-day legislative window gives it a strong chance of being the first state to implement such a reserve. Given that previous bills passed by this committee have become law, expectations remain high for Utah’s final approval.
Read more: What Is a Strategic Bitcoin Reserve and How Likely is It?
Other U.S. States Exploring Strategic Bitcoin Reserves
U.S. states planning strategic Bitcoin reserve (SBR) | Source: X
Illinois and Arizona Lead the Legislative Push
Illinois’ Strategic Bitcoin Reserve House Bill | Source; Cointelegraph
Illinois' House Bill 1844 (HB1844) proposes creating a strategic Bitcoin reserve with a mandatory five-year holding period before conversion or sale. If enacted, Illinois could be the first state to hold Bitcoin as a financial asset.
Arizona has also advanced a Bitcoin reserve bill, allowing public funds and pensions to invest in Bitcoin. With growing bipartisan support, Arizona is well-positioned to implement its reserve strategy.
Texas, Pennsylvania, and New Hampshire Move Forward
Texas has introduced Senate Bill 778, which would create a separate Bitcoin reserve fund, allowing residents to donate Bitcoin to state reserves. Pennsylvania's legislation seeks to allocate up to 10% of its public funds, including its $7 billion Rainy Day Fund, to Bitcoin. New Hampshire is considering a similar move, with provisions for staking and lending digital assets.
More States Join the Bitcoin Reserve Race
Florida, Alabama, Kentucky, and South Dakota have expressed support for Bitcoin reserves but have not yet introduced formal legislation. Montana and South Dakota recently entered discussions, signaling growing interest in state-backed Bitcoin reserves.
Ohio, Massachusetts, and North Dakota have introduced bills permitting Bitcoin investments. Oklahoma’s House Bill 1203 proposes a strategic reserve that includes Bitcoin and other digital assets with a market capitalization above $500 million.
Wyoming, a longtime advocate for crypto-friendly policies, has proposed a bill allowing its treasurer to allocate up to 3% of public funds to Bitcoin. Massachusetts and Texas are considering reserves funded by voluntary contributions or Bitcoin tax payments rather than reallocating existing funds.
Read more: Bitcoin vs. Gold: Which Is a Better Investment in 2025?
Federal and Institutional Implications of BTC Strategic Reserve
The push for state-level Bitcoin reserves aligns with broader federal discussions. U.S. Senator Cynthia Lummis has proposed a national Bitcoin reserve, calling for the U.S. government to accumulate 1 million BTC over five years. This initiative could be financed through seized Bitcoin assets and reallocating portions of the U.S. gold reserves.
If state-backed Bitcoin reserves gain traction, they could set a precedent for federal adoption. As legislative momentum builds, Bitcoin’s role as a financial asset within state treasuries may soon become a reality.
Global and Protocol-Level Interest in Bitcoin Reserves
Beyond U.S. states, Bitcoin reserves are gaining attention at both the national and protocol levels. Countries like El Salvador and Brazil have already explored Bitcoin as part of their national reserves, and discussions continue in nations such as Japan and the Czech Republic.
At the same time, blockchain protocols are also considering Bitcoin reserves as part of their treasury management strategies. Some layer-1 blockchains are evaluating Bitcoin-backed assets to improve liquidity and strengthen financial sustainability.
As Bitcoin continues to gain acceptance as a strategic asset, more states, countries, and protocols are likely to adopt reserves, further integrating cryptocurrency into traditional financial systems.
