A surge of state-level Bitcoin reserve proposals across the U.S. has hit a roadblock, after multiple states rejected bills to invest public funds in the leading crypto.
Of the 50 U.S. states, over 20 have introduced or are considering legislation related to Bitcoin reserves or investments in digital assets, but the fate of many of these bills remains uncertain.
But over the past few weeks, several states—including Montana, South Dakota, North Dakota, Pennsylvania, and Wyoming—have dealt setbacks to the growing Bitcoin reserve initiative. Here’s a look at how such bills have failed thus far.
Montana
Montana’s Bitcoin reserve proposal, House Bill 429, faltered following its introduction in late January. The bill sought 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 potentially secure higher returns, the proposal failed in a 59-41 vote in the House of Representatives on February 21.
South Dakota
South Dakota’s HB 1202, which proposed allocating up to 10% of the state's public funds into Bitcoin, was rejected by the House Commerce and Energy Committee in a 9-3 vote on February 24.
While Representative Logan Manhart, the bill's sponsor, argued that Bitcoin could preserve value in inflationary environments, Matt Clark, South Dakota’s state investment officer, cautioned against the asset's volatility.
North Dakota
North Dakota’s proposal, HB 1184, which sought to explore the feasibility of a Bitcoin reserve, failed to pass the House with a vote of 57-32.
However, that doesn’t mean the Peace Garden State has completely turned its back on crypto-related initiatives. The Legislative Assembly of North Dakota is still considering a Republican-sponsored resolution that encourages the State Treasurer and State Investment Board to pour select state funds into digital assets and precious metals, Legiscan shows.
That resolution passed a second reading in the North Dakota House and is headed to the State Senate Industry and Business Committee for further consideration, according to state government records.
Pennsylvania
Pennsylvania’s HB 2664 proposed investing up to 10% of the state’s funds in Bitcoin, but was effectively killed.
The Republican-led bill, co-sponsored by Rep. Michael Cabell and Rep. Aaron Kaufer, was first introduced last November. The legislation would have authorized the Pennsylvania State Treasurer to invest in cryptocurrencies, with public funds being poured into those digital assets using a secure custody solution, or invested in exchange-traded products that track the price of digital assets such as Bitcoin.
Wyoming
Wyoming’s bill, introduced in mid-January, was rejected by the state committee on February 6, with just one out of eight lawmakers supporting the initiative, the State of Wyoming Legislature’s records show.
The legislation called for the investment of state funds and permanent funds into Bitcoin. Under the bill, up to 3% of each of the general fund, the permanent Wyoming mineral trust fund, and the permanent land fund may be poured into the largest digital asset by market capitalization.
State and national Bitcoin reserves
The momentum behind Bitcoin reserves at the state level can be traced back to the endorsement of a national Bitcoin stockpile from U.S. President Donald Trump during his election campaign last year.
Wyoming Senator Cynthia Lummis, chair of the Senate subcommittee on digital assets, introduced a bill in July 2024 calling for the U.S. government to purchase 1 million Bitcoin over five years for a national strategic reserve, yet her state’s own Bitcoin reserve proposal has struggled to gain traction.
Moving forward
Although there's been pushback from some states, Bitcoin reserve proposals are advancing in other regions.
Utah is making the most significant progress, with its Blockchain and Digital Innovation Amendments bill passing the revenue and taxation subcommittee in a 4-2-1 vote on February 20.
HB 230 is now just one step away from reality, allowing the state treasurer to allocate up to 5% of public funds to digital assets, with Bitcoin being the only asset meeting the $500 billion market cap requirement, making it the primary candidate for the state’s reserve asset.
Texas, known for its crypto-friendly stance, is pushing forward with two distinct Bitcoin-related proposals.
One bill would allow the state to allocate up to 1% of its general revenue fund to Bitcoin, while a second bill addresses Bitcoin donations and crypto payment conversions.
On February 25, the Oklahoma House Government Oversight Committee advanced HB 1203, the Strategic Bitcoin Reserve Act, with a 12-2 vote.
Arizona’s Senate Finance Committee advanced SB 1025, which proposes up to 10% of public funds, including pensions, to be invested in assets like Bitcoin. The bill is now pending a House vote.
With 18 bills currently pending across various states, the movement for state Bitcoin reserves remains alive and well as lawmakers continue to weigh the potential of digital assets in public finance.
Editor's note: This story was originally published on February 27, 2025. It was last updated with additional detail on March 2.