Race to Bitcoin Reserves: Arizona Passes Second BTC Reserve Bill

• Arizona passed a second Bitcoin reserve bill, awaiting the governor’s signature.
• Texas became the third U.S. state to approve a state-level Bitcoin treasury.
• Arizona became the second U.S. state to approve a scaled-down version of the vetoed Bitcoin Reserve bill.
• New Hampshire is the first U.S. state to approve a state-level Bitcoin reserve.

After months of proposals from 27 states, New Hampshire, Arizona, and Texas have become among the first to approve state-level Bitcoin reserves.

This move puts the state at the forefront of a growing push to incorporate Bitcoin (BTC) into government finances.

While several other states introduced similar legislation in recent months, most of these efforts stalled or were rejected, hindered by policymakers’ hesitance to embrace BTC amid concerns over its price volatility and long-term viability as a reserve asset.

Arizona Passes Second Bitcoin Reserve Bill

Arizona has advanced House Bill 2324, a new proposal to build a state-run Bitcoin reserve—this time using seized digital assets.

The bill calls for a crypto reserve funded through property confiscated via criminal asset forfeiture.

If Governor Katie Hobbs signs it into law, it would be the second Bitcoin-related reserve bill to pass in the state.

Governor Hobbs previously vetoed two proposals, SB1373 and SB1025, that would have allowed the state to directly invest public funds in Bitcoin.

However, she did sign HB 2749, which creates a reserve sourced from unclaimed property, staking rewards, and airdrops.

HB 2324 takes a different approach: instead of relying on unclaimed assets, it seeks to repurpose confiscated crypto from criminal investigations as a new funding stream.

The bill now heads to the Arizona House of Representatives. If it passes, Arizona would notch another win in its push to integrate Bitcoin into public finance without risking taxpayer money.

Bitcoin Reserve Progress

Twenty-eight states have proposed allocating public funds to Bitcoin, with 18 actively progressing through legislative channels.

Fifteen have advanced to the House of Representatives, where committees refine the legal framework for state-held Bitcoin reserves.

However, not all proposals are moving forward. Six states have seen their bills rejected in committee, while in four others, the initiatives have stalled with no further action.

With more states considering direct Bitcoin exposure, the movement toward state-level adoption is gaining momentum.

If successful, these efforts could mark a significant shift in public finance, positioning Bitcoin as a legitimate treasury asset at the state level.

Here’s a breakdown of key states working to establish state-level BTC reserves.

Passed

New Hampshire Becomes First U.S. State To Enact Bitcoin Reserve

New Hampshire has officially passed HB 302 into law, making it the first state in the U.S. to create a state-level Bitcoin and Digital Assets Reserve Fund.

The legislation allows the state treasurer to purchase Bitcoin and other digital assets with a market cap above $500 billion, with the aim of diversifying the state’s financial reserves.

To ensure balance, the law caps the state’s Bitcoin and digital asset holdings at 5% of its total funds. This approach ensures that Bitcoin remains a complementary asset rather than a core focus, blending traditional financial practices with a forward-looking strategy.

Security is also a top priority. The law mandates that digital assets be stored in secure, state-controlled multi-signature wallets or through U.S.-regulated exchange-traded products, ensuring transparency and protection.

The law will take effect 60 days after passage, giving officials time to set up the reserve and add Bitcoin to the state’s financial portfolio.

Rep. Keith Ammon (R-Hillsborough 40), who first proposed the idea in 2022, has been a key advocate for the bill, with support from Majority Leader Jason Osborne and the NH Blockchain Council.

Governor Ayotte also played a significant role, signing the bill into law and making New Hampshire the first state in the nation to adopt this kind of policy.

Arizona Becomes Second U.S. State To Approve Bitcoin Reserve

Arizona has become the second state in the U.S. to approve a Bitcoin reserve, with Governor Katie Hobbs signing HB 2749 into law.

The bill establishes a crypto reserve for the state, but its scope is narrow; it does not authorize direct investment in cryptocurrencies.

Instead, the reserve will be funded through unclaimed crypto assets, airdrops, and staking rewards, mirroring a model used by some federal agencies.

The move follows a wave of crypto-related legislation in Arizona.

Two earlier bills, SB 1025 and SB 1373, sought to allow the state to invest public funds and confiscated crypto assets directly into Bitcoin.

Both passed the Arizona Senate, but Governor Hobbs vetoed SB 1025.

Despite that veto, the governor ultimately approved HB 2749, a pared-down version of the earlier proposals, signaling cautious support for integrating Bitcoin into the state’s financial infrastructure without exposing public funds to market volatility.

Texas Becomes Third State To Approve Bitcoin Reserve

Texas became the third state with a Bitcoin Reserve when Governor Greg Abbott signed SB 21, the Bitcoin Reserve bill, into law.

The bill, also known as the Texas Strategic Bitcoin Reserve Act, authorizes the creation of the Texas Strategic Bitcoin Reserve, a state-managed fund designed to hold Bitcoin and other qualifying cryptocurrencies as a long-term financial asset.

The reserve will operate outside the state treasury to provide investment flexibility and is managed by Glenn Hegar, the Texas Comptroller of Public Accounts.

The fund aims to hedge against inflation, enhance financial resilience, and position Texas as a leader in the digital economy.

North Carolina Bitcoin Bill Moves Forward

North Carolina lawmakers introduced two Bitcoin reserve bills that proposed investing up to 10% of state funds in exchange-traded products tied to digital assets with a market cap above $750 billion—namely, Bitcoin ETFs.

Of the two, House Bill 92 has made the most progress . The Bitcoin Reserve Bill HB 92 has passed the House Committee on Rules, Calendar, and Operations and all assigned committees.

Kentucky Becomes First To Enact “Bitcoin Rights” Law

Kentucky has officially become the first U.S. state to enshrine legal protections for Bitcoin users.

House Bill 701, now signed into law, protects individual custody rights, exempts those running Bitcoin nodes from money transmitter licensing, and blocks the imposition of new taxes on digital asset payments.

The move further solidifies Kentucky’s reputation as one of the most crypto-forward states in the country.

Michigan Joins In

Michigan has introduced four new bills to advance Bitcoin adoption and protect digital asset rights.

The first bill would allow Michigan’s state retirement fund to invest in Bitcoin, marking a major shift toward institutional crypto exposure. The second seeks to ban the use of central bank digital currencies (CBDCs) within the state and introduces broader protections for financial privacy.

The third and fourth bills focus on Bitcoin mining and propose incentives for operations that use abandoned oil and gas wells.

These include tax deductions aimed at encouraging sustainable energy use and economic development in underutilized areas.

Failed

Florida Bitcoin Reserve Bills Fail

Florida’s Bitcoin reserve bills, House Bill 487 and Senate Bill 550, have been “indefinitely postponed and withdrawn from consideration.”

The legislature adjourned its 2025 session on May 2, without passing the bills.

Florida joins Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma in shelving the Bitcoin reserve as these states failed to garner a majority of votes in the House or Senate. Florida has officially withdrawn from the contest to enact state-level legislation.

Oklahoma Bitcoin Reserve

Oklahoma took a notable step toward Bitcoin adoption when its House passed the Strategic Bitcoin Reserve Bill (HB 1203) in a 77–15 vote, signaling growing interest in integrating Bitcoin into public finance strategies.

The bill positioned Oklahoma among a growing list of states, including Texas, Arizona, and Utah, exploring Bitcoin reserves as part of their public finance strategy.

However, the momentum didn’t carry through. The bill failed to pass the Senate Revenue and Taxation Committee, losing in a narrow 6–5 vote, despite testimony in support from sponsor Sen. Brian Guthrie. Both Republicans and Democrats opposed the measure.

Pennsylvania

Pennsylvania was among the first states to introduce a Bitcoin reserve bill as early as November 2024.

The Bitcoin Strategic Reserve Act would have allowed the state to allocate up to 10% of its general , investment, and rainy day funds to Bitcoin.

However, the bill failed to pass the committee review process and is dead.

North Dakota

North Dakota introduced three Bitcoin and crypto investment bills, two of which have failed, while one proposal is currently under committee review.

Wyoming

On Jan. 18, five Republican senators in Wyoming filed a bill to create a BTC reserve. However, the bill failed to pass the committee review and is dead .

Montana

Montana introduced a Bitcoin reserve bill on Jan. 31, proposing up to $50 million in investments across Bitcoin, digital assets, stablecoins, and precious metals.

While the bill passed committee review, it failed to secure enough votes in the first chamber.

South Dakota

South Dakota Republican Rep. Logan Manhart announced on X that he plans to introduce the Bitcoin reserve bill to establish a Bitcoin stockpile in the state.

The proposed bill, however, failed to pass the committee review process and is officially dead now.

Pending

Alabama Introduces Two Concurrent Bitcoin Reserve Bills

Alabama has joined the growing number of states exploring Bitcoin reserves. Two identical bills—SB 283 and HB 482—were introduced concurrently in the legislature to streamline the process.

State Auditor Andrew Sorrell voiced his support for establishing a strategic Bitcoin reserve, citing momentum from neighboring states pursuing similar initiatives.

HB 482 proposes allowing the state to invest up to 10% of its public funds in cryptocurrencies with a market capitalization exceeding $750 billion, effectively focusing on assets like Bitcoin.

A House committee is currently reviewing the bill and will need to pass several stages before it can be voted on in its final form.