In 2025, a wave of strategic reserve legislation for Bitcoin is sweeping across U.S. states, becoming the latest battleground in the collision between the crypto 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 bitcoin reserve-related legislation, covering public funding, tax incentives and regulatory frameworks. According to analysts, the approval of Bitcoin ETFs and the increase in institutional adoption are pushing states to accelerate the layout of cryptocurrency asset strategic reserves, in order to take the lead in the future competition in the digital economy.
The Odaily Planet provides readers with the latest progress update on the states’ strategic reserves.
What are the steps for U.S. states to set up a Bitcoin strategic reserve?
If a U.S. state wishes to establish a Bitcoin Strategic Reserve, it will need to go through a full legislative and administrative process to ensure the legality and enforceability of the program. There are four steps to this process:
Step 1: First, a legislative proposal needs to be drafted by a state legislator or relevant committee and submitted to the state legislature. The bill includes details such as the specific goals of the bitcoin reserve, funding sources, and how it will be purchased and managed. After a bill is introduced, it is usually assigned to a finance or economic development committee in the state legislature for detailed consideration and possibly a hearing to hear all sides of the issue.
Step 2: Next, the bill needs to be voted on by both houses of the state legislature (if the state is bicameral). First, the state House of Representatives discusses and votes on the bill, and if it passes with a majority, it goes to the Senate for further consideration and a vote, or in some states the process is reversed. Only after passage by both chambers does the bill move on to final approval. Readers should note that all references to the House and Senate in this article refer to the state's House and Senate. Typically, the federal Senate and House of Representatives are not required to approve state legislation.
Step 3: After a bill is passed by both chambers of the state legislature, it is sent to the governor for his 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 Reserve. If the governor vetoes it, the legislature can amend it or try to override the veto with a higher vote (usually a two-thirds majority).
Step 4: Once the bill goes into effect, the state government will designate the relevant agencies to implement the reserve program, usually the state treasury or a specially created fund management department. They will need to develop a specific purchasing strategy, choose an appropriate custodian (e.g., third-party custodian or self-custodian), and ensure the safety of the reserve funds. At the same time, the state government needs to establish a transparent regulatory and auditing mechanism to regularly report to the public or the legislature on the status of the bitcoin reserve.If any of these steps go awry, the bitcoin reserve bill will not pass in the state.
In a March 1 interview with Fox Business, Cynthia Lummis, chairwoman of the U.S. Senate Banking Subcommittee on Digital Assets, revealed that a strategic bitcoin reserve plan at the federal level “lacks sufficient support” and may be difficult to get off the ground in the short term. “There aren’t enough people in the House or the Senate to move this forward at this point,” she said, ”as opposed to the state-level legislative process, which is clearly faster.”
State-by-state progress: what are the fastest moving states?
Arizona.
On February 28, 2025, two Arizona Bitcoin Reserve bills (SB 1025 et al.) passed the Senate on a “ 17-11-2” vote and are now headed to the House for consideration. If ultimately approved, the state will be one of the first in the nation to include Bitcoin in its public reserves.
Texas
On February 27th, the Texas Bitcoin Reserve Bill was officially submitted to the Senate for consideration. The proposal, which previously passed a technical review by the state’s Business and Commerce Committee, centers on allowing state treasury funds to be allocated to Bitcoin assets.
Oklahoma
On February 26, Oklahoma’s Strategic Bitcoin Reserve Act (HB 1203) was voted out of committee in the House of Representatives and went to a full vote. The bill proposes to invest up to 10% of public funds in Bitcoin or digital assets with a market capitalization of more than $500 billion, and is seen as the boldest crypto policy attempt among conservative states.
Ohio.
On the same day, Ohio’s Strategic Bitcoin Reserve Bill passed through committee, with only a full Senate vote remaining before final legislation. If passed, the state pension system may become a long-term holder of Bitcoin.
Georgia
On February 24th, Georgia introduced its second Bitcoin Reserve Bill (SB 228), which proposes to remove the state’s dollar limit on Bitcoin investments and allow the government to allocate unlimited BTC assets. This amendment is being interpreted as a signal to “fully embrace Bitcoin,” as the state passed its first bill in 2024.
With the exception of Georgia, all of the above bills are in the second step of implementation, with some states having already passed a vote in one of their two chambers. At the end of the step two vote, the governor will choose to sign them into law.
Blocked and Opposed: Details of Five State Bitcoin Reserve Bills That Failed
Montana
Montana House Bill 429 (HB 429) was introduced in late January 2025 and advocated for up to $50 million of public funds to be allocated to bitcoin, stablecoins, and precious metals. Although the sponsor, Representative Curtis Schomer, emphasized that it would “diversify the risk of state assets and achieve higher returns,” the bill failed in a February 21st House vote with 59 votes against and 41 in favor.
South Dakota
South Dakota’s HB 1202, which would have invested 10 percent of public funds in Bitcoin, was defeated in a Feb. 24 vote in the House Commerce and Energy Committee by a vote of nine against and three in favor. Sponsor Rep. Logan Manhart argued that Bitcoin could fight inflation, but state investment officer Matt Clark strongly opposed it on the grounds that it was “too volatile. South Dakota then rejected HB 1202 in the February 25th legislative session with a “deferral to the 41st day” (the actual session lasted only 40 days), explicitly rejecting the inclusion of Bitcoin as an official investment option.
North Dakota
North Dakota’s HB 1184, a bill designed to explore the feasibility of creating a Bitcoin reserve, failed in the House of Representatives by a vote of 57 to 32. However, the state legislature is still considering a Republican-sponsored resolution that proposes to allow the state treasury to invest in digital assets and precious metals. The resolution has now passed its second reading in the House and is being further discussed in the Senate Industry and Commerce Committee.
Pennsylvania
Pennsylvania HB 2664 proposes to invest up to 10% of state funds in Bitcoin, allowing assets to be allocated through a secure custodial program or a Bitcoin ETF. The proposal, co-sponsored by Republican legislators Michael Cabell and Aaron Kaufer, has been on substantial hold since November 2024 due to overwhelming opposition.
Wyoming
The Wyoming Bitcoin Reserve Act was introduced in mid-January 2025 and advocated investing 3% of the state’s general fund, mineral trust fund, and land fund in Bitcoin. However, the bill failed in a state committee vote on February 6 when only one of the eight legislators supported it. State legislative records show that opponents were concerned about the “incompatibility of digital assets with traditional financial systems”.
