An increase in Bitcoin reserve proposals at state level in the US has affected a roadblock after several states have rejected bills to invest public funds in the leading crypto.
Of the 50 US states, more than 20 years of legislation have introduced or consider Bitcoin Reserves or investments in digital assets, but the fate of many of these accounts remains uncertain.
But in recent weeks, various states – including Montana, South Dakota, North Dakota, Pennsylvania and Wyoming – have added setbacks to the growing Bitcoin Reserve initiative.
Montana’s Bitcoin Reserve proposal, House Bill 429, staggered after the introduction at the end of January. The bill tried to allocate up to $ 50 million in public funds for Bitcoin, Stablecoins and precious metals.
Despite arguments from representative Curtis Schomer, who endorsed the bill as a way to diversify state assets and possibly secure higher returns, the proposal in a vote of 59-41 in the house of representatives on 21 February.
Similarly, the HB 1202 of South Dakota, who proposed to allocate to 10% of the state’s public funds to Bitcoin, was rejected by the House Commerce and Energy Committee in a 9-3 votes on 24 February.
While representative Logan Manhart, the sponsor of the bill, argued that Bitcoin could retain value in inflatoid environments, Matt Clark, the state investment officer of South Dakota, warned against the volatility of the active.
Pennsylvania, North Dakota and Wyoming have also seen their Bitcoin reserve proposals rejected or stuck in legislative committees.
The proposal of North Dakota, HB 1184, who wanted to explore the feasibility of a Bitcoin reserve, did not succeed in passing the house with a voice of 57-32.
The HB 2664 of Pennsylvania suggested investing up to 10% of the funds of the State in Bitcoin, but was effectively killed, while the bill of Wyoming, mid -January, was rejected by the State Committee on 6 February.
State and National Bitcoin – Reserves
The momentum behind Bitcoin reserves at state level can be reduced to the approval of a National Bitcoin stock by US President Donald Trump during his election campaign last year.
Wyoming Senator Cynthia Lummis, chairman of the Senate Subcommissie for Digital Assets, introduced a bill in July 2024 in which the American government was called to buy 1 million Bitcoin in five years for a national strategic reserve, but has the own Bitcoin proposal to get grip.
Ahead
Although there has been pushback of some states, Bitcoin reserve proposals in other regions.
UTAH is making the most important progress, with his blockchain and digital innovation changes bill that the subcommittee of income and taxes withstands a 4-2-1 mood on 20 February.
HB 230 is now only one step away from the reality, so that the treasurer of the state can assign up to 5% of public funds to digital assets, whereby Bitcoin is the only assets that meets the $ 500 billion market capital requirement, making it the primary candidate for the reserve determination of the state.
Texas, known for its crypto-friendly attitude, pushes ahead with two different Bitcoin-related proposals.
One bill would enable the State to allocate 1% of its general income fund to Bitcoin, while a second invoice tackles Bitcoin donations and crypto payment conversions.
On 25 February Advanced HB 1203, the Strategic Bitcoin Reserve Act, with a 12-2 votes advanced HB 1203, the strategic Bitcoin Reserve Act.
Arizona’s Senate Financing Committee advanced SB 1025, which proposes to 10% of public funds, including pensions, to invest in cryptos such as Bitcoin. The bill is now awaiting a house voice.
With 18 accounts currently pending different states, the Movement for State Bitcoin reserves will remain alive and legislators remain the potential of digital assets in public finances.
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