The idea of establishing a strategic Bitcoin (BTC) reserve has gained significant traction in the United States, particularly following Donald Trump’s election as the 47th president.
This movement began in July 2024 when Senator Cynthia Lummis introduced a bill in the Senate advocating for the federal government to acquire one million Bitcoin tokens over five years. However, some states have taken the initiative, pushing forward with their own plans to include Bitcoin as part of their strategic reserves.
Here is an overview of the states with concrete proposals:
- Pennsylvania
In November 2024, Pennsylvania made history by being the first state to propose a strategic Bitcoin reserve. The Strategic Bitcoin Reserve Act, introduced by former Representative Mike Cabell, allows the state to allocate up to 10% of its funds to purchasing Bitcoin.
The state had already laid the groundwork for this with the Digital Asset Authorization Act, which safeguards residents’ rights to use cryptocurrencies and digital wallets.
- Texas
Representative Giovanni Capriglione introduced the Strategic Bitcoin Reserve Act in December 2024. This bill not only allows the state to hold Bitcoin as a financial asset but also accepts voluntary donations from citizens.
The Bitcoin fund would have a mandatory five-year holding period before any transactions could be considered. If passed, the law will take effect on September 1, 2025.
- Ohio
Following Pennsylvania and Texas, Ohio introduced a bill in December 2024 to establish a Bitcoin fund within its state treasury. Representative Derek Merrin emphasized that this measure aims to protect public funds from the devaluation of the U.S. dollar and to embrace emerging technologies.
- New Hampshire
In January 2025, Keith Ammon proposed a bill allowing the state treasury to invest in precious metals and digital assets with market capitalizations exceeding $500 million. Currently, Bitcoin is the only asset meeting these criteria, with a market cap of over $2 trillion.
- North Dakota
On January 14, 2025, North Dakota introduced a bill authorizing the state treasury to invest in digital assets and precious metals as part of its stabilization and legacy funds. The initiative aims to hedge against inflation and diversify investments.
- Wyoming
Wyoming proposed in January 2025 that no more than 3% of certain state funds be allocated to Bitcoin investments. Senator Cynthia Lummis praised this move as a bold step toward financial innovation.
- Massachusetts
The state introduced the Commonwealth Bitcoin Strategic Reserve, allowing the treasurer to invest up to 10% of the Stabilization Fund in Bitcoin. The bill also includes provisions to lend cryptocurrencies to generate additional returns.
- Oklahoma
On January 15, 2025, Cody Maynard proposed a bill authorizing the state treasury to invest up to 10% of public funds in Bitcoin, prioritizing cryptocurrencies with market capitalizations exceeding $500 billion.
- Utah
On January 20, 2025, Utah proposed a law allowing investments in digital assets and defining regulations for stablecoins. It also authorizes staking and lending cryptocurrencies.
Conclusion
It’s likely that more states will follow suit, adopting Bitcoin as a key tool to diversify investments and hedge against inflation. Florida may be next, while states like Michigan and Wisconsin have already indirectly invested in Bitcoin through exchange-traded funds.
Will Bitcoin become the asset that redefines state investment strategies? Time will tell.
By: Nestor Castillo, ForAllTechNews Director