A number of state-level bitcoin reserve proposals in the U.S. have hit a roadblock after several states vetoed bills that would have invested public funds in the leading cryptocurrency.
More than half of the 50 U.S. states have introduced or are considering legislation related to bitcoin reserves or digital asset investments, but the end of many of these bills remains unclear.
Some bills have successfully passed, creating a framework for state-level crypto reserves, but a number have failed to do so. Here’s a look at which states have rejected bitcoin reserve bills
Florida.
In early May, the Sunshine State of Florida delayed and withdrew two bills aimed at bringing Bitcoin into the state’s coffers.
Both House Bill HB 487 and Senate Bill SB 550 sought to allocate up to 10% of specific public funds to the top crypto-asset, with HB 487 adding all taxes and fees paid in Bitcoin to the general reserve it would have created.
Neither bill made it to the Florida House or Senate for consideration, as they were withdrawn at the end of the legislative session on May 3rd.
Oklahoma
The state’s attempt to create a bitcoin reserve failed on April 16 when the Oklahoma Senate Finance and Taxation Committee rejected HB 1203, the Strategic Bitcoin Reserve Act, by a vote of six to five.
The bill would have allowed the state to invest up to 5% of four separate state funds in bitcoin or any other digital asset with an average market capitalization of more than $500 billion over the past year. Currently, only Bitcoin meets that criteria.
Despite the bill’s defeat, one representative who was expected to vote against the bill changed her position to support it on the afternoon of the vote, saying she was persuaded by pro-bitcoin voters.
Utah.
Although the state’s bill was not vetoed or voted down, Utah’s plan to create a strategic bitcoin reserve fell through in March, when a provision that would have allowed the state to create the reserve was removed from a blockchain bill.
The Blockchain and Digital Innovation Amendment Act (HB 2030), which passed the Utah Senate by a vote of 19 to 7 after the removal of the reserve provision, establishes the right of individuals to operate blockchain nodes, participate in pledges of interests, and more. The bill was officially signed by the state’s governor on March 25th.
New Mexico
New Mexico’s SB 275, a bill that would have used 5% of the state’s coffers to invest in Bitcoin, was tabled in the Senate Taxation, Commerce and Transportation Committee in early February.
The bill’s sponsor, Republican Anthony Thornton, has said he will reintroduce the bill in the future, according to SourceNM.
Montana.
Montana’s Bitcoin Reserve proposal, House Bill 429, has not progressed well since it was introduced in late January. The bill seeks to allocate up to $50 million in public funds for bitcoin, stablecoins, and precious metals.
Despite Rep. Curtis Schomer’s support for the bill, which he argued would help diversify the state’s assets and potentially lead to higher returns, the proposal was defeated in the House of Representatives on Feb. 21 by a vote of 59 to 41.
South Dakota
South Dakota’s HB 1202, which proposed investing up to 10 percent of the state’s public funds in Bitcoin, was defeated in the House Commerce and Energy Committee on February 24 by a vote of nine to three.
While the bill’s sponsor, Rep. Logan Manhart, argued that Bitcoin could preserve its value in an inflationary environment, South Dakota investment official Matt Clark warned about the asset’s volatility.
North Dakota.
North Dakota’s proposal, HB 1184, to explore the feasibility of establishing a Bitcoin reserve, failed to pass the House of Representatives by a vote of 57 to 32.
However, this does not mean that the “Peace Garden State” (North Dakota) has completely abandoned cryptocurrency-related initiatives, as the Legiscan website shows that the North Dakota Legislative Assembly is still considering a Republican-sponsored resolution that would encourage the state treasurer and the state investment board to invest some state funds in digital assets and precious metals. assets and precious metals.
According to state records, the resolution passed its second reading in the North Dakota House of Representatives and will go to the state Senate Industry and Commerce Committee for further consideration.
Pennsylvania
Pennsylvania’s HB 2664, which had proposed investing up to 10 percent of the state’s funds in Bitcoin, was actually defeated.
The Republican-led bill, co-sponsored by Rep. Michael Cabell and Rep. Aaron Kaufer, was first introduced last November. The bill would have authorized the Pennsylvania Secretary of the Treasury to invest in cryptocurrencies, and public funds could have been invested in these digital assets through secure custodial solutions or in exchange-traded products that track the price of digital assets like Bitcoin.
Wyoming
Wyoming’s bill, introduced in mid-January, was rejected by a state committee on Feb. 6, with records from the state legislature showing that only one of the eight lawmakers supported the initiative.
The bill called for investing state funds and permanent funds in Bitcoin. Under the bill, funds from the General Fund, the Permanent Wyoming Mineral Trust Fund and the Permanent Land Fund could each be invested up to the largest digital asset by market capitalization.
Arizona
Arizona’s “Arizona Strategic Bitcoin Reserve Act” (SB 1025) was advanced all the way to Governor Katie Hobbs’ desk but ultimately failed, with Katie Hobbs vetoing the bill in early May.
If passed, the bill would have allowed the Arizona Treasurer to invest up to
10% of state funds into Bitcoin and other cryptocurrencies. katie hobbs
wrote in a letter to Arizona Senate President Warren Peterson that “Arizona’s retirement funds are not appropriate for the state to attempt untested investments like virtual currencies.” It’s worth noting that the Arizona Senate approved the Bitcoin Reserve Bill
SB 1373 and sent it to Governor Katie Hobbs for a final decision.
Although
SB 1025 was defeated, a separate bill was eventually passed and signed into law a few days later. Arizona legislative records show that HB 2749
was officially signed into law by the governor, marking the creation of the state’s first crypto reserve. The reserve will not be used for investment, but will instead receive unclaimed virtual assets, airdrops and pledged rewards and keep them stored in their native form.
Looking Ahead.
Although New Hampshire is the first state to pass a strategic bitcoin reserve bill, which authorizes the state treasurer to purchase bitcoin or digital assets with a market cap of more than $500 billion and caps positions at 5% of total reserve funds. However, a number of other bills remain to be considered by lawmakers around the country.
The North Carolina House of Representatives passed a bill, the Digital Asset Investment Act (HB 92), which authorizes the state treasurer to invest in qualified digital assets. An earlier version of the bill had proposed that investments in digital assets could not exceed 10% of a fund’s total, but the version ultimately passed by the House adjusted the cap to 5%. The bill now goes to the Senate for consideration.
A Texas House committee has passed SB 21, a bill that proposes to create a state-level bitcoin reserve. The bill passed by a 9-4 vote, after receiving overwhelming support of 25-5 in the state Senate. If passed by the full House by June 2, it will go to Governor Greg Abbott for his signature.
Other states, such as Alabama and Minnesota, have also introduced Bitcoin Reserve bills, but are still far behind in the legislative process.
According to BitcoinLaws, a total of about 36 bills related to the state’s Bitcoin Reserve are still moving forward.
