Which states in the United States have rejected Bitcoin reserve bills?

Author: Decrypt

Compiled by: Felix, PANews (This article has been edited)

After several states vetoed bills to invest public funds in this leading cryptocurrency, some state-level Bitcoin reserve proposals in the United States have faced obstacles.

In the 50 states of the United States, more than half of the states have proposed or are considering legislation related to Bitcoin reserves or digital asset investments, but the outcomes of many of these bills remain uncertain.

Some bills have successfully passed, establishing a framework for state-level crypto reserves, but many other bills have not succeeded. Let's take a look at which states have rejected Bitcoin reserve bills?

Florida

In early May, the Sunshine State of Florida postponed and withdrew two bills aimed at incorporating Bitcoin into the state’s finances.

Both House Bill HB 487 and Senate Bill SB 550 attempt to allocate up to 10% of certain public funds to this top cryptocurrency, with Bill HB 487 adding all taxes paid in Bitcoin to the general reserve that it was originally supposed to create.

Neither of these bills was submitted to the Florida House of Representatives or Senate for consideration, as they were withdrawn at the end of the legislative session on May 3.

Oklahoma

On April 16, the Oklahoma Senate Finance and Taxation Committee voted 6 to 5 to reject Bill HB 1203, the "Strategic Bitcoin Reserve Act," marking a failed attempt by the state to establish a Bitcoin reserve.

The bill originally would have allowed the state to invest up to 5% from four independent state funds into Bitcoin or any other digital asset that had an average market value of over $500 billion in the past year. Currently, only Bitcoin meets this standard.

Although the bill was rejected, a representative who was originally expected to vote against it changed her stance on the afternoon of the vote and supported the bill, stating that she was persuaded by voters who support Bitcoin.

Utah

Although the state's bill was neither vetoed nor voted down, Utah's plan to establish a strategic Bitcoin reserve fell through in March when a provision that could have allowed the state to create the reserve was removed from a blockchain bill.

The "Blockchain and Digital Innovation Amendment" (HB 2030) passed in the Utah Senate with 19 votes in favor and 7 against after the removal of reserve clauses, establishing the rights of individuals to operate blockchain nodes and participate in staking, among others. The bill was officially signed by the state's governor on March 25.

New Mexico

The SB 275 bill in New Mexico, which aims to allocate 5% of state funds to invest in Bitcoin, was submitted to the Senate Tax, Business and Transportation Committee in early February but has been shelved.

According to SourceNM, the bill's sponsor, Republican Anthony Thornton, stated that he will reintroduce the bill in the future.

Montana

The Bitcoin reserve proposal in Montana, House Bill 429, has faced challenges since its introduction in late January. The bill aims to allocate up to $50 million of public funds for Bitcoin, stablecoins, and precious metals.

Despite Congressman Curtis Schomer's support for the bill, believing it would help achieve state asset diversification and potentially yield higher returns, the proposal was defeated in the House on February 21 by a vote of 59 to 41.

South Dakota

South Dakota's HB 1202 proposal, which proposes to put up to 10% of the state's public funds into Bitcoin, was rejected on February 24 by a vote of 9 against and 3 in favor on the House Commerce and Energy Committee.

Although the bill's sponsor, Congressman Logan Manhart, believes that Bitcoin can retain its value in an inflationary environment, South Dakota investment official Matt Clark has warned about the asset's volatility.

North Dakota

The proposal HB 1184 in North Dakota aims to explore the feasibility of establishing a Bitcoin reserve, but it failed to pass in the House vote with 57 votes against and 32 votes in favor.

However, this does not mean that "Peace Garden State" (North Dakota) has completely abandoned initiatives related to cryptocurrencies. The Legiscan website shows that the North Dakota legislative assembly is still considering a resolution proposed by Republicans that encourages the state treasurer and the state investment board to allocate a portion of state funds into digital assets and precious metals.

According to state government records, the resolution has passed the second reading in the North Dakota House of Representatives and will be submitted to the state Senate Industrial and Commercial Committee for further review.

Pennsylvania

The Pennsylvania HB 2664 bill had proposed to invest up to 10% of the state's funds in Bitcoin, but the bill has actually been defeated.

This bill, led by the Republican Party, was jointly initiated by Representatives Michael Cable and Aaron Kauffman and was first introduced last November. The bill would authorize the Pennsylvania State Treasurer to invest in cryptocurrencies, allowing public funds to be invested in these digital assets through secure custodial solutions, or to invest in exchange-traded products that track the prices of digital assets such as Bitcoin.

Wyoming

The bill proposed in Wyoming in mid-January was rejected by the state committee on February 6, with records from the state legislature showing that only one of the eight legislators supported the initiative.

The bill calls for state government funds and permanent funds to be invested in Bitcoin. According to the bill, funds from the general fund, the Permanent Wyoming Mineral Trust Fund, and the Permanent Land Fund can be invested up to their maximum in the largest digital assets by market capitalization.

Arizona

The "Arizona Strategic Bitcoin Reserve Act" (SB 1025) in Arizona had made its way to Governor Katie Hobbs' desk, but ultimately failed, as Katie Hobbs vetoed the bill in early May.

If the bill is passed, it will allow the Arizona State Treasurer to invest up to 10% of state government funds into Bitcoin and other cryptocurrencies. Katie Hobbs wrote in a letter to Arizona Senate President Warren Petersen, "Arizona's retirement funds are not suitable for the state to attempt untested investments like virtual currencies." Notably, the Arizona Senate has approved the Bitcoin Reserve Bill SB 1373 and sent it to Governor Katie Hobbs for a final decision.

Although the SB 1025 bill was rejected, a separate bill was ultimately passed and signed into law a few days later. Legislative records from Arizona, USA, show that the HB 2749 bill has been officially signed into law by the governor, marking the establishment of the state's first cryptocurrency reserve. This reserve is not used for investment but is designed to receive unclaimed virtual assets, airdrops, and staking rewards, and to store them in their native form.

Outlook

Although New Hampshire is the first state to pass a strategic Bitcoin reserve bill, which authorizes the state treasurer to purchase Bitcoin or digital assets with a market value exceeding $500 billion, and sets a holding limit of 5% of total reserve funds. However, other bills are still pending review by legislators in various locations.

The North Carolina House of Representatives passed the "Digital Asset Investment Act" (HB 92), authorizing the state treasury department to invest in eligible digital assets. An earlier version of the bill proposed that investments in digital assets should not exceed 10% of the total fund amount, but the version ultimately passed by the House adjusted the cap to 5%. The bill has now been submitted to the Senate for review.

The Texas House committee has passed the SB 21 bill, which aims to establish a state-level Bitcoin reserve. The bill passed with a vote of 9-4, having previously received overwhelming support in the state Senate with a vote of 25-5. If it receives full approval from the House before June 2, it will be sent to Governor Greg Abbott for signing.

Other states, such as Alabama and Minnesota, have also proposed Bitcoin reserve bills, but they are still far behind in the legislative process.

According to BitcoinLaws data, there are currently about 36 bills related to national Bitcoin reserves still in progress.