Foresight News The Bitcoin Reserve Act is still in the exploratory stage at the state level. Written by: KarenZ, Foresight News On the evening of March 2nd, Trump outlined his ambitious vision: "To ensure that America becomes the world capital of cryptocurrency. We are making America great again and advancing a crypto strategic reserve including BTC, ETH, XRP, SOL and ADA." This move not only marks the federal government's firm support for cryptocurrencies, but may also ignite legislative enthusiasm in U.S. states in the field of digital asset reserves. Facing the reality of inflation eroding the purchasing power of traditional assets, state governments, although unable to directly intervene in monetary policy, can explore the possibility of incorporating cryptocurrencies such as Bit into public finances through legislation. As of March 4, 2025, 24 states have proposed cryptocurrency reserve bill drafts, trying to implement Trump's grand blueprint at the local level. These efforts are both a response to the national strategy and reflect the proactive actions of the states in fiscal innovation and economic resilience. This article will sort out the legislative process of U.S. states, and detail the content and progress of the Bit reserve proposals in 24 states. U.S. State Legislative Sessions and Processes The legislative sessions of U.S. states refer to the time period when the state legislature (including the House and Senate) formally convenes to discuss and pass bills in a year. Due to differences in state constitutions and conventions, the timing and duration vary significantly. The vast majority of states hold regular legislative sessions annually, usually in the spring (such as January to May), with session lengths ranging from a few months to half a year, with the specific timing determined by each state. A few states (such as Montana, Nevada, North Dakota and Texas) hold sessions every two years (in odd-numbered years), with a slower legislative pace. The legislative process in U.S. states usually has some minor differences due to the differences between states, but most states follow a similar basic framework. Each state has its own constitution and legislative body, usually a bicameral legislature consisting of a state house and a state senate responsible for enacting laws. The following is a typical process for a bill to become law in a state with a bicameral legislature: 1. Proposal: A member of the House or Senate submits a bill draft. After submission, the bill is assigned a number, with "HB" indicating a House bill and "SB" indicating a Senate bill. 2. Committee Review: After the bill is submitted in writing, it is assigned to the relevant committee for review. The committee may hold public hearings, inviting experts, stakeholders and the public to provide input. Committee members discuss and amend the bill, and vote on whether to send it to the full chamber for consideration. 3. Chamber Consideration: Second reading (debate and amendment by legislators) and third reading (final vote). 4. Other Chamber Consideration: The bill undergoes similar committee review and chamber consideration in the other chamber (e.g., from the House to the Senate, or vice versa). 5. If the two chambers' versions differ, reconciliation is needed. 6. Governor Approval: Signing, veto, or no action. 7. Effective Date: Bills typically take effect immediately upon signing, or on a specific date specified in the bill. Some states have provisions for automatic enactment or expiration if not signed within a certain time. Bit Reserve-Related Bill Drafts in U.S. States To date, a total of 24 U.S. states have submitted bill drafts related to Bit reserves, with some states (such as Arizona, Texas, and Florida) submitting two related bills. In terms of the progress of the proposals, the bills in most states are still in the draft proposal or chamber consideration stage, while a few states (such as Utah) have made relatively rapid progress. 5 states (Pennsylvania, Montana, North Dakota, Wyoming, and South Dakota) have rejected the relevant bills. The reasons for rejection include concerns about the risks and volatility associated with digital assets, taxpayer fund risk concerns, the high energy consumption of cryptocurrency mining, and the potential use of digital currencies for illicit activities. It is worth emphasizing that Senator Cynthia Lummis, who is friendly to cryptocurrencies, is from Wyoming. Cynthia Lummis proposed a bill in 2024 to allow states to voluntarily hold Bit in their reserves, and also created a "Bit Purchase Program" to purchase no more than 200,000 Bit per year for a total of 1 million Bit over five years. In the fastest-moving Utah, a draft bill involving investing a portion of public funds in Bit has passed the full House and a Senate committee, and now needs to complete the Senate's second reading, third reading, vote, and the governor's signature. Since Utah's legislative session is fixed at 45 calendar days, if the bill is passed by the Senate and signed by the governor before March 7, 2025, it will take effect on May 7; otherwise, the bill will expire due to the end of the session. In terms of the investment scope, most states' bills focus on Bit and stablecoins, or set a market cap threshold (usually $500 billion or $750 billion) to ensure only Bit qualifies. Even if some bills allow the inclusion of other cryptocurrencies, they are often limited to those obtained through donations. A few states have expanded the investment scope to a wider range of digital assets, such as NFTs and other cryptocurrencies. Regarding the investment ratio, most states have set clear upper limits: the majority restrict it to within 10% of public funds or specified funds (such as Arizona, Florida, and Michigan), while a few states limit it to 5% (such as Utah and New Mexico). Wyoming had previously proposed a 3% limit, but the relevant bill has been rejected. To ensure asset security, most states require holding Bit through secure custody solutions, qualified custodians or exchange-traded products (ETPs), such as Georgia, New Mexico, and Oklahoma. In addition, some states (such as Arizona, Michigan, and Rhode Island) allow lending Bit or digital assets without increasing financial risk to generate additional income, demonstrating a certain degree of innovative experimentation. Most states have also developed strict security measures and standards for Bit custody solutions, ensuring multi-party governance, encrypted private key storage, and disaster recovery protocols. Utah Utah's Blockchain and Digital Innovation Amendment Bill HB0230 was proposed on January 28, 2025, authorizing the state treasurer to invest a portion of public funds in eligible digital assets (digital assets with an average market cap of over $500 billion in the past 12 months, currently only Bit meets this standard) or stablecoins, with an investment cap of 5% of the designated account. Under certain conditions, this draft bill supports the pledging and lending of these digital assets. HB0230 also stipulates that state or local governments cannot prohibit the acceptance of digital asset payments or the use of self-custody/hardware wallet-custodied assets, and that the operation of nodes, software development, asset transfers, and participation in staking do not require money transmission licenses (if not involving fiat currency). If HB0230 is passed, the effective date will be May 7, 2025. Progress: HB0230 has passed the relevant House committee, the full House, and the relevant Senate committee, and now needs to complete the Senate's second reading, third reading, vote, and the governor's signature. Arizona Arizona currently has two strategic Bit reserve bill drafts, SB1025 and SB1373, both introduced by state senators. SB1025 authorizes public funds to invest up to 10% of the public funds (state treasury and retirement systems) they control in virtual currencies. Additionally, if the U.S. Treasury Secretary establishes a strategic Bit reserve to store government Bit holdings, public funds can store their virtual currencies in a secure segregated account within the strategic Bit reserve.

Foresight News The draft SB1373 proposes to establish a Digital Asset Strategic Reserve Fund, which will be composed of legislative appropriations and digital assets seized by the state. The state treasurer should deposit the state's forfeited digital assets into this fund through secure custody solutions provided by qualified custodians, or in the form of exchange-traded products issued by investment companies registered in the state. The state treasurer shall not invest more than 10% of the total deposits of the fund in any fiscal year. Digital assets in the fund, including BTC, stablecoins, NFTs, and virtual currencies, can be lent out to generate additional returns if the loan does not increase any financial risk to the state. Progress: Both bills have passed the third reading in the Senate and have been submitted to the House for consideration. Texas Texas currently has two strategic BTC reserve bill drafts, SB21 and SB778, both proposed by Senator Charles Schwertner. While the two bills have similar goals, they differ significantly in details, scope, and implementation. SB21 aims to enhance the state's fiscal resilience and hedge against inflation through investing in cryptocurrencies, and accepts donations as supplementary funding. It involves establishing and managing the Texas Strategic BTC Reserve Fund for investing in cryptocurrencies, and grants the State Auditor (the state's chief financial officer) investment authority over this reserve fund and certain other state funds. The scope is not limited to BTC but includes other cryptocurrencies (such as assets obtained through "forks" or "airdrops"). However, there is a rule that the average market value of BTC and other cryptocurrencies purchased or received as donations in the last 12 months must be at least $500 billion. SB778 is more focused on BTC, proposing to establish a strategic BTC reserve for the state to own and hold BTC as a financial asset, and for Texas residents and individuals to donate BTC to the reserve to promote shared ownership and community investment in the state's financial future. This bill does not involve actively investing in other assets. Progress: SB21 is currently being voted on by a relevant Senate committee. SB778 has entered the review stage of the Senate Finance Committee. Both bills state that if the bill receives a two-thirds vote of the elected members of each house, it shall take effect immediately. If the bill does not receive the votes needed for immediate effect, it shall take effect on September 1, 2025. Florida Florida currently has two BTC reserve bill drafts (House Bill 487 and Senate Bill 550) in the committee review stage. Both bills, introduced in February 2025, provide the state's Chief Financial Officer with flexibility in certain investment decisions and authorize investments in BTC and other digital assets from certain public funds to hedge against inflation risk. The investment limit is no more than 10% of the total assets of any account. Progress: Committee review stage. Illinois The Illinois Strategic BTC Reserve bill HB1844 authorizes the establishment of a "Strategic BTC Reserve Fund" as a special fund within the state treasury, aiming to hold BTC as a financial asset. It stipulates that the state treasurer may accept gifts, grants, and donations of BTC to the fund from Illinois residents and government entities. The state treasurer shall hold all BTC deposited into the fund for at least 5 years, after which the BTC may be transferred, sold, appropriated, or converted to another cryptocurrency. Progress: HB1844 has been submitted to the House Rules Committee for consideration. Ohio Ohio currently has two BTC or cryptocurrency reserve bill drafts, House Bill 18 and Senate Bill 57. HB18, titled the Ohio Strategic Cryptocurrency Reserve Act, allows the state treasurer to invest certain interim funds (from the General Revenue Fund, Budget Stabilization Fund, and Deferred Prizes Trust Fund) in digital assets, with an investment cap of 10% of the fund balance. Although the HB18 title and provisions suggest a broader scope of digital assets, the bill also stipulates that eligible digital assets must have an average market value of at least $750 billion in the past 12 months, effectively limiting it to BTC. SB57, titled the Ohio BTC Reserve Act, authorizes the state's funds to invest in BTC and requires government entities to accept cryptocurrency payments. The state treasurer can use interim state funds and designated donations to invest in BTC, which must be held for at least five years before any transfer, sale, or conversion. Progress: HB18 was submitted to the House Technology and Innovation Committee on January 28. SB57 was submitted to the Senate Financial Institutions, Insurance and Technology Committee on January 29. Georgia Georgia introduced its first BTC reserve Senate bill SB178 on February 13, aiming to amend the Official Code of Georgia to authorize the State Depository Board to allow the state treasurer to invest in BTC, stipulating that the state treasurer shall not invest more than 5% of public funds in BTC. The proposal also specifies how any digital assets obtained under this chapter shall be held: 1) directly through the use of secure custody solutions; 2) held by a qualified custodian on behalf of the state; or 3) in the form of an exchange-traded product issued by a registered investment company. The committee may also allow the state treasurer to lend out digital assets, provided such lending does not increase the state's financial risk. On February 21, Georgia introduced a second BTC reserve bill SB228, also aiming to amend the Official Code of Georgia to authorize the State Depository Board to allow the state treasurer to invest in BTC, and require the state treasurer to develop policies and procedures for accepting, storing, and transacting BTC. This proposal removes the 5% investment limit on BTC and the rule allowing the lending of digital assets from the previous SB178. Progress: Both SB178 and SB228 have entered the review stage in the Senate. North Carolina The North Carolina Digital Asset Investment bill H92 authorizes the state treasurer to invest public funds in digital asset exchange-traded products and digital assets (with a minimum 12-month average market value of $750 billion), with an investment cap of 10% for each fund. These public funds include the General Fund, Highway Fund, and Highway Trust Fund, as well as special funds authorized for the state treasurer to hold (Teachers' and State Employees' Retirement System, Consolidated Judicial Retirement System, Local Governmental Employees' Retirement System, Escheat Fund, State Education Assistance Authority, and State Property Fire Insurance Fund). Progress: H92 has been submitted to the House Committee on Commerce and Economic Development. Michigan

Foresight News

The state of Michigan HB4087 authorizes the state treasurer to invest in Bit from the general fund, the "countercyclical budget and economic stabilization fund" up to 10%. In addition, the state treasurer can also lend out Bit without increasing the state's financial risk to generate returns. The bill defines Bit broadly as a digital currency that uses cryptographic technology to regulate the generation and verification of monetary units and to facilitate the transfer of funds, operating independently of a central bank.

Progress: HB4087 has been submitted to the House Communications and Technology Committee.

Maryland

The Maryland Strategic BTC Reserve Bill HB1389 authorizes the establishment of the Maryland BTC Reserve Fund, allowing the state to invest in BTC as a reserve asset, and authorizes the state treasurer to invest funds confiscated from illegal gambling activities into BTC.

Progress: HB1389 is currently in the committee review stage in the House, with the Judiciary Committee primarily responsible for the review (hearing on March 11), while the Appropriations Committee may also be involved (as it was initially assigned to two committees).

Kentucky

Kentucky's HB376 authorizes the state investment commission to invest in certain digital assets and precious metals, prohibits investment in central bank digital currencies, authorizes state agencies to accept digital assets and precious metals as payment, prohibits accepting central bank digital currencies as payment, requires the Department of Revenue to accept digital assets and precious metals as payment, and requires the state treasurer to transfer certain digital asset deposits into the budget reserve trust fund. For digital asset investments, it supports investing in digital assets with a market capitalization of over $750 billion (average market capitalization over the past fiscal year), as well as those approved by U.S. or state regulatory authorities. The total investment in digital assets, stablecoins, and precious metals shall not exceed 10% of the total surplus cash investments of the state under subsection (9).

Progress: HB376 has been submitted to the House Banking and Insurance Committee.

Oklahoma

The latest revised draft of Oklahoma's Strategic BTC Reserve Bill (HB1203) authorizes the state finance official to invest public funds in BTC or any Non-Fungible Token with an average market value of over $500 billion in the previous calendar year, as well as stablecoins, from the following funds: the state general fund; the revenue stabilization fund; and the constitutional reserve fund. The bill also supports the use of third-party solutions to collateralize digital assets, and if passed, will take effect on November 1, 2025. Any state retirement fund can directly hold digital assets using secure custody solutions, store digital assets with qualified custodians, or invest in exchange-traded products registered with the U.S. Securities and Exchange Commission or Commodity Futures Trading Commission.

Progress: Passed the House Government Oversight Committee on February 25.

Iowa

Iowa currently has two bills, SF403 and HF246, submitted by senators and representatives respectively.

Both bills allow the state finance official to invest public funds from the state general fund, cash reserve fund, and the Iowa economic emergency fund in precious metals, Non-Fungible Tokens with an average market value of over $750 billion in the previous calendar year, and stablecoins. The investment shall not exceed 5% of the total public funds in the respective fund.

Progress: SF403 and HF246 are currently pending review by the Senate State Government Committee.

New Mexico

New Mexico's SB275 authorizes the state treasurer and investment council to invest in BTC from the following funds: the land grant permanent fund, the severance tax permanent fund, the tobacco settlement permanent fund; and any other state fund deemed appropriate by the state investment council. The investment cap is 5%. The bill also supports lending out assets without increasing the state's financial risk.

Progress: SB275 is currently pending review by the Senate Tax, Business and Transportation Committee.

New Hampshire

New Hampshire's HB302 bill allows the state treasurer to invest public funds in precious metals, Non-Fungible Tokens (with an average market value of over $500 billion in the previous calendar year), and stablecoins. The bill will take effect 60 days after passage.

Progress: The HB302 bill is still in the review stage of the House Commerce and Consumer Affairs Committee, with ongoing discussions through subcommittee work sessions and an upcoming executive session.

Rhode Island

Rhode Island's HB6007 bill aims to authorize the state treasurer, the state employees' retirement system, the public school employees' retirement system, or any other state retirement system to include BTC as a valuable asset to hedge against inflation and protect the purchasing power of state funds; and allow flexibility in investment decisions to adapt to changing economic conditions and explore emerging opportunities. The state treasurer can invest in BTC or digital assets using unspent, unencumbered, or uncommitted funds (in the general fund, budget stabilization reserve fund, and other investment funds directly managed by the state treasurer). The bill defines digital assets as virtual currency, cryptocurrency, or native digital assets, including BTC, stablecoins, Non-Fungible Tokens, or other assets that confer economic, ownership, or access rights and exist in digital form.

Within a calendar year, the state treasurer's investment in BTC or digital assets shall not exceed 10% of the total deposits in that fund at the time of investment, and can also lend out BTC or digital assets without increasing the state's financial risk to generate additional revenue.

Progress: HB6007 was submitted to the House Finance Committee on February 28.

Missouri

Missouri legislators have currently submitted two BTC reserve-related bill drafts, HB1217 and SB614. HB1217 authorizes the establishment of a BTC Strategic Reserve Fund, allowing the state treasurer to invest, purchase, and hold Bit, accept BTC donations, and hold them for at least five years before potentially selling, transferring, or redeeming. SB614 authorizes the state treasurer to use a portion of state funds to invest in stablecoins or qualified Non-Fungible Tokens (with an average market value of over $500 billion in the previous 12 months), with an investment cap of 10%.

Progress: Neither has entered the committee review stage yet.

West Virginia

West Virginia's SB465 bill allows the state government to invest up to 10% of public funds and public retirement funds in precious metals, stablecoins, and Non-Fungible Tokens with a market value over $750 billion.

Progress: Has not entered the committee review stage yet.

Massachusetts

Massachusetts' SD422 bill authorizes the establishment of a federal BTC strategic reserve, allowing for broad investment in BTC or other digital assets. In a fiscal year, the state treasurer's investment in BTC or digital assets shall not exceed 10% of the total deposits in the federal stabilization fund allocated by the legislature. The treasurer can also deposit any confiscated BTC or other digital assets into the fund. Additionally, BTC or other digital assets can be lent out without increasing the federal financial risk to generate additional revenue.

Progress: Has not entered the committee review stage yet.

Draft Bills Rejected

Pennsylvania

The Pennsylvania House Strategic Bitcoin Reserve Bill HB2664 was introduced in November 2024, allowing the State Treasurer to invest up to 10% of Pennsylvania's General Fund, Rainy Day Fund, and State Investment Fund in BTC and crypto-based ETPs.

Progress: Rejected at the committee stage. A petition opposing the bill cited reasons such as harming taxpayer funds, high energy consumption of crypto mining, and frequent use for illicit activities.

Montana

Montana House Bill 429 was introduced on February 7, 2025, proposing to create a Inflation Protection Act State Special Revenue Account to invest in precious metals and digital assets. The bill authorizes the Investment Board to invest the Inflation Protection Act State Special Revenue Account funds in precious metals, stablecoins, and digital assets with a market capitalization exceeding $750 billion (based on the prior calendar year's average), and authorizes a transfer of up to $50 million from the General Fund to the account by July 15, 2025. It's worth noting that BTC is currently the only digital asset that meets this market cap threshold.

The bill defines digital assets as virtual currencies, cryptocurrencies, native digital assets (including stablecoins and Non-Fungible Tokens), and other assets that exist only in digital form and confer economic, ownership, or access rights.

Bill Progress or Voting Result: The House bill failed to pass a second vote, with a final vote of 41 (Yes) to 59 (No). The reason for rejection was the concern of some legislators about the volatility of digital assets and their impact on taxpayer funds, unwilling to place public funds in high-risk digital investments.

North Dakota

North Dakota's HB1184 bill, introduced on January 31, 2025, deals with digital asset and precious metal investments, stipulating that the "Funds Managed by the Board of University and School Lands" and "Public Funds Managed by the North Dakota State Investment Board" can invest up to 10% in precious metals, digital assets, or stablecoins with a prior year's average market value exceeding $500 billion. The digital assets must be held directly by the Board/Retirement and Investment Office through a qualified custodial solution or through an exchange-traded product representing the state's holdings.

Additionally, the bill supports the use of third-party solutions for staking (provided the state retains legal ownership of the digital assets), and supports lending digital assets (provided the lending increases investment returns without increasing the state's financial risk).

Progress: The HB1184 bill was rejected by the House in a 32-57 vote.

Wyoming

In January 2025, several Wyoming legislators introduced a bill HB0201 authorizing the state's public funds to invest in BTC. Specifically, it authorizes the State Treasurer to invest the following funds in BTC:

1. General Fund: The investment in BTC shall not exceed 3% of the General Fund at any time.

2. Wyoming Permanent Mineral Trust Fund: The investment shall not exceed 3% of the fund.

3. Permanent Land Fund: The investment shall not exceed 3% of the fund.

The bill also stipulates that the State Treasurer should acquire and hold BTC through one or more of the following methods:

1. Qualified custodial solutions;

2. Compliant custodians;

3. By holding or owning shares of an investment company or fund registered under the Investment Company Act of 1940.

Notably, if the investment assets appreciate, the State Treasurer is not required to sell or reduce the investment to comply with the rules; if the investment assets depreciate and fall below the specified investment ratios, the investment in BTC can be restored.

Progress: The bill did not pass the vote in the Wyoming House Committee on Minerals, Business, and Economic Development, and did not receive the necessary report or advancement before the final committee deadline.

South Dakota

South Dakota's HB1202 bill, introduced on February 3, authorizes the state's public funds to invest in BTC, with the investment not to exceed 10% of the state funds available for investment. The holding methods include direct holding by the State Investment Council through a qualified custodial solution, holding by a qualified custodian on behalf of the State Investment Council, or through an exchange-traded product issued by a registered investment company.

Progress: The South Dakota House Commerce and Energy Committee voted on February 24 to defer HB 1202 to the 41st legislative day, effectively rejecting the bill, as the state's legislative session is limited to a maximum of 40 days.

Summary

According to analyst Julian Fahrer's statistics, in the first quarter of 2025, 12 U.S. states reported holding a total of $330 million worth of MicroStrategy (MSTR) shares, with these investments primarily held indirectly through pension funds or treasury bonds. As MicroStrategy is a major BTC holder, this indicates that some states have already started investing in BTC indirectly.

Source: Julian Fahrer

At the same time, the crypto reserve bills being pushed by various U.S. states are becoming the concrete implementation of former President Trump's vision of making the U.S. the "Crypto Capital of the World" at the local level.

However, overall, due to legislative procedures, risk concerns, and precedents of rejection, the likelihood of most bills being passed is relatively low. 2025 may become a turning point for crypto strategies, but it is more likely to be a scenario of a few states testing the waters rather than a comprehensive rollout. The final outcome will depend on the legislative progress in the coming months and the specific policy direction of the Trump administration.

According to Grok's analysis, BTC reserve bills at the state level are still in the exploratory stage, with a generally low passage rate. In the short term (1-2 years), the likelihood of most states passing such bills is not more than 30%. However, if there is a breakthrough at the federal level (such as the "Bitcoin Strategic Petroleum Reserve Act" pushed by Senator Lummis) or if BTC prices stabilize and gain more institutional acceptance, state-level legislation may gradually accelerate in the next 3-5 years.