Race to Bitcoin Reserves: New Hampshire and Arizona Lead, Texas Close to Full Approval

• 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.
• Arizona’s governor vetoed the Bitcoin reserve bill, citing concerns over the untested nature of using crypto assets for retirement funds.
• Florida has postponed both Bitcoin reserve bills indefinitely, effectively exiting the Bitcoin race.

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.

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.

Texas Bitcoin Reserve Awaits Governor Approval

Texas Senate Bill 21 , which would establish a state-managed Bitcoin reserve, is now one step away from becoming law.

On May 21, the bill passed its third reading in the House with a vote of 101–42 after clearing multiple stages, including three separate votes.

Before reaching the governor’s desk, the bill must be returned to the Senate for approval of amendments added in the House.

One key amendment extends the minimum market capitalization requirement period for digital assets to qualify for inclusion in the reserve from 12 to 24 months.

This change raises the eligibility bar, effectively excluding newer or lower-cap cryptocurrencies from consideration.

A final Senate vote is expected soon, after which the bill could be signed into law.

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.

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.

The law caps the state’s Bitcoin and digital asset holdings at 5% of its total funds to ensure balance. 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 both transparency and protection.

The law will take effect 60 days after passage, giving officials time to set up the reserve and begin adding 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.

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

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.

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

Texas Bitcoin Reserve Bill Moves to Government Efficiency Committee

Texas leads the nation in Bitcoin reserve legislation, with seven active bills in various stages of the judicial process.

Three remain stalled at the introduction phase, two are under review by the first House committee, and one has advanced to the second House committee.

The Texas Bitcoin Reserve bill HB 4258 has been forwarded to the Delivery of Government Efficiency Committee.

During a recent House Committee hearing , lawmakers focused on a key issue: who would have the authority to manage the state’s Bitcoin holdings.

Much of the discussion centered on whether the state treasurer already has the legal power to make such investments or if new legislation is needed to remove ambiguity.

The committee noted that HB 302, like the other crypto-related bills under review, is designed to give clear guidance and reduce legal uncertainty for state officials tasked with managing public funds.

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.