The Five-State Bill has faltered, with the focus of controversy pointing directly to volatility and fiscal compatibility. In the new battlefield of the digital economy, who can seize the opportunity? #Bitcoin #Cryptocurrency #USA🇺🇸 Latest developments on Bitcoin strategic reserves in U.S. states: Five states oppose, Arizona may be the first to passUnexpectedly, not all of the red states in Trump's base support Bitcoin reserves.In 2025, the legislative wave for Bitcoin strategic reserves swept across U.S. states, becoming the latest battleground for the collision between the cryptocurrency industry and the traditional financial system. According to statistics, more than 20 of the 50 states in the U.S. have proposed or are considering legislation related to Bitcoin reserves, covering aspects like public fund allocation, tax incentives, and regulatory frameworks. Analysts point out that the approval of Bitcoin ETFs and the increasing institutional adoption are driving states to accelerate their deployment of cryptocurrency asset strategic reserves, aiming to gain an edge in the future digital economy competition.Odaily Planet Daily has compiled the latest progress updates on the strategic reserves from various states.What are the steps for U.S. states to establish Bitcoin strategic reserves?If a state in the U.S. wishes to establish a Bitcoin strategic reserve, it needs to go through a complete legislative and administrative process to ensure the legality and feasibility of the plan. This process consists of four steps:Step 1: First, the legislative proposal needs to be drafted by state legislators or relevant committees and submitted to the state legislature. The bill includes specific goals for the Bitcoin reserve, sources of funding, methods of purchase and management, and other details. After the proposal is submitted, it is typically assigned to the state legislature's finance or economic development committee for detailed review, and hearings may be held to gather opinions from various parties.Step 2: Next, the bill needs to be voted on by both chambers of the state legislature (if the state has a bicameral system). First, the state House of Representatives will discuss and vote on it. If it passes by a majority, it will be submitted to the Senate for further review and voting; in some states, the process is reversed. After both chambers pass the bill, it can enter the final approval stage. Readers should note that all references to the House and Senate in this article refer to the state’s House and Senate. Generally, state-level legislation does not require approval from the federal Senate and House of Representatives.Step 3: Once both chambers of the state legislature pass the bill, it will be sent to the governor for signing. If the governor agrees and signs it, the bill officially becomes law, and the state government can begin implementing the Bitcoin strategic reserve. If the governor vetoes it, the legislature can amend it or attempt to override the veto with a higher vote count (usually a two-thirds majority).Step 4: Once the bill takes effect, the state government will designate relevant agencies to execute the reserve plan, usually managed by the state treasury or a specially established fund management department. They need to develop specific purchasing strategies, select appropriate custody methods (such as third-party custody or self-custody), and ensure the security of the reserve funds. At the same time, the state government needs to establish a transparent regulatory and auditing mechanism, regularly reporting the status of the Bitcoin reserves to the public or legislative bodies.If any step above goes awry, the Bitcoin reserve bill will not pass in that state.On March 1, the chair of the U.S. Senate Banking Committee on Digital Assets, Cynthia Lummis, revealed in an interview with Fox Business that the federal-level Bitcoin strategic reserve plan "lacks sufficient support" and may be difficult to implement in the short term. "Currently, there are not enough candidates in the House and Senate to push this forward," she stated, "In contrast, the state-level legislative process is obviously faster."Status of each state: Which states are progressing the fastest?ArizonaOn February 28, 2025, two Bitcoin reserve bills (SB 1025 etc.) passed in the Arizona Senate with a vote of "17-11-2" and are currently submitted for consideration in the House of Representatives. If ultimately approved, the state will become one of the first in the U.S. to include Bitcoin in public reserves.TexasOn February 27, the Texas Bitcoin reserve bill was officially submitted for consideration in the Senate. Previously, the proposal had passed the technical review by the state’s Business and Commerce Committee, with its core content including allowing state treasury funds to be allocated to Bitcoin assets.OklahomaOn February 26, the Strategic Bitcoin Reserve Act (HB 1203) passed a committee vote in the Oklahoma House of Representatives and entered the full voting stage. This bill proposes to invest up to 10% of public funds in Bitcoin or digital assets with a market capitalization exceeding $500 billion, considered the boldest crypto policy attempt among conservative states.OhioOn the same day, Ohio’s Strategic Bitcoin Reserve bill passed committee review and is only one step away from final legislation, pending a vote by the full Senate. If approved, the state’s pension system may become a long-term holder of Bitcoin.GeorgiaOn February 24, Georgia proposed a second Bitcoin reserve bill (SB 228), intending to remove the state’s investment limit on Bitcoin, allowing the government to allocate unlimited BTC assets. Previously, the state passed its first related bill in 2024, and this amendment is interpreted as a signal of a "full embrace of Bitcoin."Except for Georgia, all other bills are at the execution stage of Step 2, with some states already having passed votes in one of the two chambers.After the second round of voting, the governor will choose to sign it into law.Obstacles and Opposition: Details on the Failure of Bitcoin Reserve Bills in Five StatesMontanaMontana House Bill 429 (HB 429) was introduced in late January 2025, proposing to allocate up to $50 million of public funds into Bitcoin, stablecoins, and precious metals. Although the bill's sponsor, Representative Curtis Schomer, emphasized that this move could "diversify state asset risks and achieve higher returns," the bill was defeated in the House vote on February 21 with 59 votes against and 41 votes in favor.South DakotaSouth Dakota HB 1202 proposed to invest 10% of public funds into Bitcoin, but it was rejected in the House Commerce and Energy Committee vote on February 24 with 9 votes against and 3 votes in favor. The bill's sponsor, Representative Logan Manhart, argued that Bitcoin could combat inflation, but state investment officer Matt Clark strongly opposed it on the grounds of "excessive volatility." Subsequently, South Dakota effectively rejected HB 1202 on February 25 during the legislative session by delaying it to the 41st day of deliberation (while the actual session lasted only 40 days), clearly refusing to include Bitcoin as an official investment option.North DakotaNorth Dakota HB 1184 aimed to explore the feasibility of establishing a Bitcoin reserve, but it was not passed in the House with 57 votes against and 32 votes in favor. However, the state legislature is still reviewing a resolution proposed by Republicans to allow state finances to invest in digital assets and precious metals. This resolution has passed the second reading in the House and is under further discussion by the Senate Industrial and Commercial Committee.PennsylvaniaPennsylvania HB 2664 proposed to invest up to 10% of state funds into Bitcoin, allowing asset allocation through secure custody solutions or Bitcoin ETFs. This proposal, co-sponsored by Republican legislators Michael Cabell and Aaron Kaufer, was effectively shelved due to high levels of opposition since its introduction in November 2024.WyomingWyoming's Bitcoin Reserve Bill was introduced in mid-January 2025, proposing to invest 3% of the state general fund, mineral trust fund, and land fund into Bitcoin. However, in the state committee vote on February 6, only 1 out of 8 members supported it, leading to the bill's failure. Legislative records show that opponents were concerned that "digital assets are incompatible with the traditional financial system."
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