More US States Pass Bitcoin Reserve Laws: Progress or Policy Risk?
The growing interest of US states in holding Bitcoin as part of their government’s financial reserves is becoming a new trend, despite the controversy surrounding the asset’s volatility and legality. So far, three states, New Hampshire, Arizona, and Texas, have officially passed laws allowing Bitcoin holdings, while many others are still considering or have rejected similar proposals.
New Hampshire: A Pioneer
New Hampshire was the first state to sign into law a proposal that would allow the government to allocate up to 5% of public funds to digital assets and precious metals. HB 302, signed into law in May 2025, requires digital assets to have an average market capitalization of at least $500 billion over the past year to qualify, effectively allowing only Bitcoin to be included. By law, the state can hold Bitcoin directly or through authorized custodians. The bill passed by a narrow margin in the House, reflecting the split in lawmakers over the role of cryptocurrency in fiscal policy.
Arizona: Politically Thwarted Efforts
Arizona initially made significant progress by passing HB 2749, which would allow the state to hold unclaimed digital assets in their original form rather than liquidate them. However, efforts to expand Bitcoin investment have been unsuccessful. Two bills, SB 1025 and HB 2324, which would have allowed direct investment in digital assets or the creation of a Bitcoin reserve, were vetoed by Governor Katie Hobbs, who argued that cryptocurrencies remain an untested investment and should not be used as a public pension fund for experimentation.
Texas: A Strategic Approach
Texas stands out for its most proactive and systematic approach. Governor Greg Abbott signed two bills in June 2025, including the creation of the Texas Strategic Bitcoin Reserve. The law allows the state to hold Bitcoin through purchases, forks, airdrops, or donations, with a requirement that the asset have a market capitalization of over $500 billion within two years. Strong legal safeguards are also included to prevent future dismantling of the reserve, reflecting a long-term commitment to the digital asset as an inflation hedge.
States that failed or are pending
Not all states have made progress. At least five states, including Montana, North Dakota, Pennsylvania, South Dakota, and Wyoming, have failed to pass legislation related to Bitcoin reserves due to concerns about financial safety and liability. In South Dakota, a proposal to invest 10% of state funds in Bitcoin died in committee. Meanwhile, some states, such as Utah, have dropped Bitcoin-related provisions from larger blockchain bills before they pass.
17 States Remaining Under Consideration
According to data from the Bitcoin Reserve Monitor, 17 states are currently considering Bitcoin reserve-related proposals, including Alabama, Florida, Georgia, Idaho, Illinois, Kansas, Kentucky, Maine, Maryland, Michigan, Missouri, New Mexico, North Carolina, Ohio, Oklahoma, Rhode Island, and West Virginia. The level of support in these states remains unclear, but investor pressure and the spread of blockchain technology could play a role in policy advocacy.
Weighing Risks and Taking the Long Term
State governments’ consideration of Bitcoin reflects a shift in how they view digital assets from a speculative instrument to a potential element of reserve management strategies. However, barriers remain. Bitcoin’s high volatility, the possibility of federal regulation, and concerns about transparency in digital asset custody remain factors that have many lawmakers hesitant.
However, states like Texas and New Hampshire are betting on the long term, arguing that Bitcoin can serve as a strategic financial hedge in an uncertain economic climate and rising inflation.
Conclusion
While the road ahead is long and not without controversy, the trend of US states seeking to legalize Bitcoin holdings shows that cryptocurrencies are creeping into the heart of traditional fiscal policy. In an era where technology and finance are rapidly converging, state governments’ adaptation to cryptocurrencies is not just an option, it may be inevitable.