Report on the Top 5 States Closest to Establishing a Strategic Bitcoin Reserve

As of March 08, 2025, several U.S. states are actively pursuing the establishment of a Strategic Bitcoin Reserve, reflecting a growing trend among state governments to integrate Bitcoin into their financial strategies. This report identifies the top five states closest to achieving this goal and provides an update on the current status of their progress, based on legislative advancements and official actions.

1. Texas

  • Current Status: Texas leads the pack, with legislation (SB 21) to establish a Strategic Bitcoin Reserve having already passed the state Senate. This marks a significant step forward, demonstrating strong legislative momentum. The bill now awaits consideration by the Texas House of Representatives and, if approved, must be signed into law by the governor.

  • Details: Texas has positioned itself as a cryptocurrency-friendly state, bolstered by its large economy and supportive political climate. Public statements from officials, such as Lieutenant Governor Dan Patrick and Senator Charles Schwertner, underscore the state’s commitment to this initiative.

2. Arizona

  • Current Status: Arizona is in the final stages of considering the "Arizona Strategic Bitcoin Reserve Act." The bill has been approved by the Arizona Senate Finance Committee with a 5-2 vote and is now progressing through the legislative process, currently under review by the Senate Rules Committee.

  • Details: Co-sponsored by State Senator Wendy Rogers and Representative Jeff Weninger, the legislation would permit Arizona to invest up to 10% of its public funds in Bitcoin and other digital assets. If it clears the full Senate and House, Arizona could soon join Texas at the forefront of this movement.

3. Utah

  • Current Status: Utah is nearing approval for its Strategic Bitcoin Reserve legislation, specifically the "Blockchain and Digital Innovation Amendments" bill. On January 28, 2025, a Utah House committee voted 8-1 in favor of the bill, signaling robust support as it moves toward final legislative stages.

  • Details: This bill would allow the state to invest public funds in Bitcoin and other cryptocurrencies, reflecting Utah’s broader commitment to digital innovation. The state is well-positioned to finalize this legislation in the near future.

4. Pennsylvania

  • Current Status: Pennsylvania has proposed the Pennsylvania Bitcoin Strategic Reserve Act, a bill that would authorize the state to allocate up to 10% of its general, emergency, and state investment funds to Bitcoin. The legislation is currently under consideration in the state legislature.

  • Details: While not as advanced as Texas, Arizona, or Utah, Pennsylvania’s introduction of a specific bill indicates meaningful progress. With a $7 billion Rainy Day Fund, the state has significant financial resources to support this initiative if the bill gains traction.

5. Florida

  • Current Status: Florida is in the planning stages of establishing a Strategic Bitcoin Reserve, with discussions pointing to a potential rollout in the first quarter of 2025. No formal legislation has been introduced yet, but the state is actively exploring this option.

  • Details: The Florida Blockchain Business Association (FBBA) and state officials, including CFO Jimmy Patronis, are driving this effort. Proposals include investing state funds, such as pension funds, in Bitcoin. Florida’s progress is less advanced than the other four states but shows promise for future action.

Summary of Progress

State, Current Status, Next Steps

Texas

Legislation passed the Senate

House approval, governor’s signature

Arizona

In final stages; passed Senate Finance Committee

Full Senate vote, House approval

Utah

Near approval; passed House committee

Final legislative approval

Pennsylvania

Legislation proposed and under consideration

Committee review, legislative vote

Florida

Planning phase, potential Q1 2025 rollout

Formal legislation introduction

Conclusion

Texas, Arizona, and Utah are the most advanced in establishing a Strategic Bitcoin Reserve, with Texas leading due to its Senate-approved legislation. Pennsylvania and Florida follow, with Pennsylvania having a proposed bill and Florida laying the groundwork for future action. These states are part of a broader movement to integrate Bitcoin into state financial systems, potentially setting a precedent for others to follow. However, the situation remains fluid, and updates to legislative progress could shift these rankings in the coming months.

 Report on U.S. States and Their Progress on Establishing Strategic Bitcoin Reserves

March 8, 2025

Introduction

A strategic Bitcoin reserve is a state-managed stockpile of Bitcoin, akin to reserves of traditional assets like gold or oil held by governments. States are exploring this idea as a hedge against inflation, a way to diversify financial portfolios, and a strategy to attract technology-driven businesses and individuals. As of March 2025, several U.S. states have taken steps toward establishing such reserves, ranging from passing legislation to initiating public discussions. This report examines their relative progress, supported by available data, and addresses challenges tied to this emerging trend.

States Leading the Charge

A handful of states have made significant strides in integrating Bitcoin into their financial strategies:

  • Wyoming: A trailblazer in cryptocurrency policy, Wyoming recognized cryptocurrency as money in 2019 and enabled special purpose depository institutions for crypto custody in 2020. It has since explored legislation for a strategic Bitcoin reserve, cementing its leadership in this space.

  • Texas: In 2021, Texas classified cryptocurrency as a legal form of money, followed by a 2022 law authorizing a state-chartered digital currency. Proposals for a strategic Bitcoin reserve have gained traction, bolstered by Texas’s role as a Bitcoin mining hub and discussions about accepting Bitcoin donations.

  • Florida: Florida has embraced cryptocurrency through laws permitting its use in transactions (2021) and establishing a blockchain task force (2022). Legislation for a strategic Bitcoin reserve is under consideration, with additional proposals to invest state retirement funds in digital assets.

  • Pennsylvania: The "Strategic Digital Asset and Precious Metal Reserve Act" is under review by the House Finance Committee, aiming to allow investments in Bitcoin and other digital assets.

  • Ohio: The proposed "Ohio Bitcoin Reserve Act" would create a Bitcoin fund managed by the state treasurer, with refinements expected in 2025.

  • Utah: The "Blockchain and Digital Innovation Amendments" bill, advancing with strong committee support, would permit Bitcoin investments from public funds.

  • Arizona: The "Arizona Strategic Bitcoin Reserve Act," approved by the Senate Finance Committee, proposes allocating up to 10% of public funds to Bitcoin, pending further review.

  • Illinois: House Bill 1844, currently under review, seeks to establish a Bitcoin reserve as a savings mechanism.

  • Missouri: House Bill 1217 proposes a Bitcoin Strategic Reserve Fund to hedge against inflation.

  • New Hampshire: Legislation from Representative Keith Ammon would allow the state treasury to hold Bitcoin, though it lacks explicit mention of the cryptocurrency.

  • Oklahoma: The "Strategic Bitcoin Reserve Act" (House Bill 1203) permits investment in Bitcoin and other major digital assets.

  • Massachusetts: A bill proposes allocating up to 10% of the state’s rainy-day fund to Bitcoin or similar assets.

  • North Dakota: A resolution suggests investing state funds in digital assets, indicating broader interest.

  • Alabama: The state auditor has advocated for a Bitcoin reserve to capitalize on cryptocurrency growth.

  • Montana: Proposals to invest up to $50 million in digital assets, including Bitcoin, are under consideration.

  • New Mexico: Senate Bill 275 suggests a 5% allocation of public funds to Bitcoin.

  • North Carolina: The "NC Digital Assets Investments Act" would enable investments in digital assets via exchange-traded products.

  • Kentucky: Legislation targets retirement fund investments in cryptocurrencies like Bitcoin.

  • Maryland: The "Strategic Bitcoin Reserve Act of Maryland" proposes using seized gambling funds for Bitcoin investments.

  • Michigan and Wisconsin: These states have already allocated portions of public employee retirement portfolios to Bitcoin exchange-traded funds (ETFs).

States with Proposed or Pending Legislation

Several states have introduced but not yet enacted legislation:

  • Arizona: The "Arizona Strategic Bitcoin Reserve Act" awaits further legislative action.

  • New Hampshire: A bill to permit cryptocurrency investments is pending.

  • Pennsylvania: The digital asset reserve act remains under review.

  • Ohio: The Bitcoin reserve act is still in development.

  • Illinois: House Bill 1844 is under consideration.

  • Missouri: House Bill 1217 is pending.

  • Montana: Digital asset investment legislation is being debated.

  • New Mexico: Senate Bill 275 is in early stages.

  • North Carolina: The digital assets act is under review.

  • Kentucky: Retirement fund investment legislation is pending.

  • Maryland: The Bitcoin reserve act is under consideration.

States with Public Discussions but No Formal Action

Some states have expressed interest without legislative steps:

  • South Dakota: The governor has voiced support for Bitcoin reserves.

  • Nebraska: The attorney general has praised cryptocurrency’s potential.

  • Alabama: The state auditor’s advocacy signals early interest.

  • Florida: The Chief Financial Officer has requested a feasibility study for retirement fund investments.

Data and Statistics

  • Ownership Trends: About 10% of Americans own cryptocurrency, a number steadily rising.

  • Market Size: Cryptocurrency’s total market capitalization exceeds $2 trillion, outpacing many national GDPs.

  • State Engagement: At least 21 states are actively pursuing or considering Bitcoin reserves.

  • Projected Impact: If all proposed bills pass, states could collectively hold approximately 247,000 BTC, valued at roughly $23.7 billion based on current prices.

Challenges and Controversies

Adopting strategic Bitcoin reserves involves significant hurdles:

  • Volatility: Bitcoin’s price fluctuations pose risks to state budgets.

  • Environmental Impact: Mining’s energy demands raise sustainability concerns.

  • Regulatory Uncertainty: Evolving federal and state laws complicate implementation.

  • Public Opinion: Critics view such investments as speculative, potentially facing taxpayer backlash.

Conclusion

Wyoming, Texas, and Florida lead the push for strategic Bitcoin reserves, supported by states like Pennsylvania, Ohio, and Utah, which are advancing legislative efforts. Meanwhile, most states remain in exploratory phases, with 21 actively engaged in the conversation. As cryptocurrency’s economic role grows, more states may follow suit, drawn by potential financial and competitive benefits. However, volatility, environmental issues, and regulatory ambiguity require careful navigation. The future of state-level Bitcoin reserves hinges on balancing these risks with the promise of innovation and economic resilience.