Author: jk, Odaily Planet Daily

In 2025, a wave of legislation for Bitcoin strategic reserves swept across various states in the United States, becoming the latest battleground for the collision between the crypto industry and the traditional financial system. According to statistics, more than 20 states out of the 50 in the U.S. have proposed or are considering legislation related to Bitcoin reserves, covering aspects such as public fund allocation, tax incentives, and regulatory frameworks. Analysts point out that the approval of Bitcoin ETFs and the increase in institutional adoption are driving states to accelerate their layouts for crypto asset strategic reserves, aiming to gain an advantage in the future digital economy competition.

Odaily Planet Daily has compiled the latest progress updates on 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 Bitcoin strategic reserves, it must go through a complete legislative and administrative process to ensure the legality and feasibility of the plan. This process is divided into 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 Bitcoin reserves, sources of funding, methods of purchase and management, and other details. After the proposal is introduced, it is usually 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. Some states may have the reverse process. After both chambers approve, the bill can enter the final approval stage. Readers should note that all references to the House of Representatives and the 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.

• Step 3: Once both chambers of the state legislature pass the bill, it will be sent to the governor for signature. If the governor agrees and signs it, the bill officially becomes law, and the state government can initiate the implementation of the Bitcoin strategic reserves. If the governor vetoes it, the legislature can revise 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, typically managed by the state treasury or a specially established fund management department. They need to develop specific purchasing strategies, choose 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 transparent regulatory and auditing mechanisms to regularly report the status of Bitcoin reserves to the public or legislative bodies.

If any step above encounters issues, the Bitcoin reserve bill will not pass in that state.

On March 1, during an interview with Fox Business, Cynthia Lummis, chair of the U.S. Senate Banking Committee's digital assets subcommittee, revealed 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 clearly faster."

State Progress: Which states are moving the fastest?

Arizona

On February 28, 2025, two Bitcoin reserve bills (SB 1025, etc.) in Arizona passed in the Senate with a vote of "17-11-2" and are currently submitted for review 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.

Texas

On February 27, the Bitcoin reserve bill in Texas was officially submitted for Senate review. 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 allocate Bitcoin assets.

Oklahoma

On February 26, Oklahoma's Strategic Bitcoin Reserve Act (HB 1203) passed a vote in the House committee and entered the full vote stage. The bill proposes to invest up to 10% of public funds in Bitcoin or digital assets with a market capitalization exceeding $500 billion, seen as the boldest attempt at crypto policy in conservative states.

Ohio

On the same day, Ohio's Strategic Bitcoin Reserve Act passed committee review, with only the full Senate vote remaining before final legislation. If passed, the state’s pension system may become a long-term holder of Bitcoin.

Georgia

On February 24, Georgia proposed a second Bitcoin reserve bill (SB 228), aiming to remove the state’s investment limit on Bitcoin, allowing the government to allocate BTC assets without restriction. Previously, the state had passed its first related bill in 2024, and this revision is interpreted as a signal of "fully embracing Bitcoin."

Except for Georgia, all other bills are in the execution stage of Step 2, with some states having already passed votes in one of the chambers. After the voting in Step 2 concludes, the governor will choose to sign it into law.

Obstacles and Opposition: Details on Five States' Bitcoin Reserve Bills Failing

Montana

Montana House Bill 429 (HB 429) was introduced in late January 2025, advocating for the allocation of up to $50 million of public funds to Bitcoin, stablecoins, and precious metals. Although the proposer, Representative Curtis Schomer, emphasized that this move could "diversify state asset risks and achieve higher returns," the bill was not passed in the House vote on February 21, with 59 votes against and 41 votes in favor.

South Dakota

South Dakota's HB 1202 proposed to invest 10% of public funds in Bitcoin but was defeated in the House Commerce and Energy Committee vote on February 24, with 9 votes against and 3 votes in favor. Proposer Representative Logan Manhart argued that Bitcoin could combat inflation, but state investment officer Matt Clark strongly opposed it, citing "excessive volatility." Subsequently, South Dakota effectively rejected HB 1202 in the legislative session on February 25 by postponing it to the "41st day of review" (the actual session only lasts 40 days), clearly refusing to include Bitcoin in official investment options.

North Dakota

North Dakota's HB 1184 aimed to explore the feasibility of establishing Bitcoin reserves but 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 treasury investments in digital assets and precious metals. This resolution has passed the second reading in the House and is currently under further discussion by the Senate Industry and Business Committee.

Pennsylvania

Pennsylvania's HB 2664 proposed to invest up to 10% of state funds in Bitcoin, allowing asset allocation through secure custody solutions or Bitcoin ETFs. This proposal, co-initiated by Republican legislators Michael Cabell and Aaron Kaufer, has been effectively shelved due to high opposition since its introduction in November 2024.

Wyoming

Wyoming's Bitcoin reserve bill was introduced in mid-January 2025, advocating for a 3% investment of the state’s general fund, mineral trust fund, and land fund in Bitcoin. However, in the state committee vote on February 6, only 1 out of 8 legislators supported it, and the bill was declared a failure. State legislative records show that opponents worried that "digital assets are incompatible with the traditional financial system."