So far, 27 States have joined the race to establish state-level Bitcoin and crypto reserves by introducing Bitcoin reserve bills. According to Bitcoin on-chain data aggregator Bitbo, the states proposed to invest up to 10% of their state funds in Bitcoin and crypto reserves.
Bitbo claimed that lawmakers in several U.S. States, including Maryland, Kentucky, and Iowa, had already introduced state-level bills to establish BTC strategic reserves. Maryland’s House Bill 1389, Kentucky’s House Bill 376, and Iowa’s House File 246 aimed to incorporate BTC into state financial policies.
However, while slamming Elon Musk’s D.O.G.E, former BitMEX CEO Arthur Hayes called the proposed Bitcoin strategic reserve(s) “a terrible idea” and “a political disaster waiting to happen.” He shredded the ‘fantasy’ of a BTC stockpile as misguided and dangerous. He said ‘what could be bought could be sold’ and politicians were more than likely to turn BTC into a ‘political football,’ destabilizing its price for short-term gains.
BTC reserve regulation gains traction across U.S. States as regulatory challenges loom
Montana is 19th US state to introduced 'Bitcoin Reserve' legislation.
17 active: AZ, FL, IA, IL, KY, MA, MD, MO (x2), MT, NH, NM, OH (x2), OK, PA, SD, TX, UT.
2 failed: WY, ND.
— Bitcoin Laws (@Bitcoin_Laws) February 8, 2025
According to the founder and CEO of venture capital firm DFG James Wo, regulatory challenges remained ‘a hurdle’ despite the increasing introduction of BTC reserve bills in almost half of the U.S. States. Wo said while States may ‘follow suit,’ strict fiscal policies and concerns over BTC’s volatility could pose challenges for legislators and the public. He, however, added that the successful passing of the BTC reserve bills by enough states could ‘lay the groundwork for a broader conversation about the federal Bitcoin reserve in the near future.
Bitcoin Laws, a crypto legislation tracking platform, highlighted that over 20 States had introduced BTC and crypto reserve bills. However, progress data provided on the platform showed that the bills in Wyoming and North Dakota had failed.
“The tipping point will be when one state formally adopts BTC in reserves. After that, it’s game on.”
–Isaac Joshua, CEO at Gems Launchpad
Texas Lieutenant Governor Dan Patrick listed the Texas Bitcoin Reserve among his top 40 legislative priorities.
Pennsylvania leads the charge in strategic Bitcoin reserve implementation
According to Fox Business, Pennsylvania became the first state to introduce a BTC reserve bill in November 2024. Since then, several other states have proposed or passed similar legislation. These states include Florida, Alabama, Massachusetts, Kentucky, Montana, New Hampshire, Oklahoma, Ohio, South Dakota, and 18 others. Utah, which has had a digital asset task force since 2022, could be the first U.S. state to establish a fully regulated BTC reserve.
Rep. Ben Keathley led Missouri in introducing the second BTC reserve bill. If passed, Missouri’s new BTC reserve regulation would allow the state to hold and accept Bitcoin for government transactions. Ohio also introduced two BTC reserve bills according to the Bitcoin Laws platform.
The Ohio State Bill 57 authorizes the state to invest in BTC and requires government entities to accept crypto payments. Specifically, the bill establishes the state treasurer-managed Ohio BTC Reserve Fund to invest in Bitcoin using interim state funds and ‘designated donations.’ However, information shared on the Bitcoin Law platform revealed that the state treasurer must hold the BTC for at least five years before any transfer, sale, or conversion.
Maryland’s BTC reserve legislation, which is expected to be effective as of October 1st, 2025, disclosed that the reserve would be primarily funded through gambling violations. In particular, asset forfeitures resulting from violations of Maryland’s gambling laws would be deposited in the fund.
As per Bitcoin Laws, money in Missouri is ‘prima facie contraband’ if a law enforcement officer in the state seizes it in connection with an arrest for gambling-related violations. These violations include unlawfully playing or operating bookmarking schemes and unlawfully betting on horse races, athletic events, lotteries, or games. Using an unlawful gaming table or gaming device also qualifies as a gambling violation in Maryland.
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