Which US States Have Rejected Bitcoin Reserve Bills?

Author: Decrypt

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

Some state-level bitcoin reserve proposals in the United States have hit a roadblock after several states rejected bills that would invest public funds in the leading cryptocurrency.

More than half of the 50 U.S. states have proposed or are considering legislation related to Bitcoin reserves or digital asset investments, but the outcome of many of these bills remains unclear.

Some bills have been successfully passed to establish a framework for state-level crypto reserves, but many have failed. Here’s a look at which states have rejected Bitcoin reserve bills:

Florida

In early May, the Sunshine State of Florida delayed and withdrew two bills that would have included Bitcoin in state finances.

Both House Bill HB 487 and Senate Bill SB 550 seek to allocate up to 10% of specific public funds to the top crypto asset, with HB 487 adding all taxes paid in Bitcoin to the general reserve it would otherwise create.

Neither bill was brought to the Florida House or Senate for consideration because they were withdrawn at the end of the legislative session on May 3.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 HB 1203, the Strategic Bitcoin Reserve Act, and the state’s attempt to establish a Bitcoin reserve failed.

The bill would have allowed the state to invest up to 5% of four separate state funds in Bitcoin or any other digital asset with an average market value of more than $500 billion over the past year. Currently, only Bitcoin meets this criterion.

Although the bill was defeated, one representative who was expected to vote against it changed her stance and supported the bill in the afternoon of the vote, saying she was persuaded by voters who supported Bitcoin.

Utah

Although the state’s bill has not been vetoed or voted down, Utah’s plans to establish a strategic Bitcoin reserve fell through in March when a provision that would have allowed the state to create a reserve was removed from a blockchain bill.

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

New Mexico

New Mexico's SB 275, which seeks to invest 5% of state funds in Bitcoin, was shelved after being referred to the Senate Taxation, Commerce and Transportation Committee in early February.

The bill's sponsor, Republican Anthony Thornton, said he would reintroduce the bill in the future, SourceNM reported.

Montana

Montana’s bitcoin reserve proposal, House Bill 429, has struggled since it was introduced in late January. The bill seeks to allocate up to $50 million in public funds for bitcoin, stablecoins and precious metals.

Although Rep. Curtis Schomer, D-Calif., supported the bill, arguing that it would help diversify state assets and potentially generate higher returns, the proposal was defeated in the House on Feb. 21 by a vote of 59 to 41.

South Dakota

South Dakota’s HB 1202, which would have put up to 10% of the state’s public funds into Bitcoin, was defeated in a 9-3 vote in the House Commerce and Energy Committee on February 24.

While the bill's sponsor, Rep. Logan Manhart, believes Bitcoin will hold its value in an inflationary environment, South Dakota investment official Matt Clark warned about the asset's volatility.

North Dakota

North Dakota's proposal HB 1184, which aimed to explore the feasibility of establishing a Bitcoin reserve, failed to pass in the House of Representatives with 57 votes against and 32 votes in favor.

However, this does not mean that the “Peace Garden State” has completely given up on cryptocurrency-related initiatives. The North Dakota Legislative Assembly is still considering a resolution proposed by Republicans that would encourage the state treasurer and the state investment board to invest part of the state’s funds in digital assets and precious metals, according to the Legiscan website.

The resolution passed the North Dakota House on second reading and will go to the state Senate Industry and Commerce Committee for further consideration, according to state records.

Pennsylvania

Pennsylvania’s HB 2664 bill, which would have invested up to 10% of the state’s funds in Bitcoin, has effectively been killed.

The Republican-led bill, co-sponsored by Rep. Michael Cabell and Rep. Aaron Kauffer and first introduced last November, would authorize Pennsylvania’s treasurer to invest in cryptocurrencies, with public funds being placed into these digital assets through secure custody solutions or in exchange-traded products that track the price of digital assets like Bitcoin.

Wyoming

The bill introduced in Wyoming in mid-January was killed by a state committee on Feb. 6, with state legislative records showing only one of eight lawmakers supported the initiative.

The bill calls for investing state and permanent funds in Bitcoin. Under the bill, funds from the General Fund, the Permanent Wyoming Mineral Trust Fund and the Permanent Land Fund could be invested in the largest digital asset by market value, respectively.

Arizona

Arizona’s “Arizona Strategic Bitcoin Reserve Act” (SB 1025) made it all the way to Governor Katie Hobbs’ desk but ultimately failed, with Hobbs vetoing the bill in early May.

If the bill is passed, it will allow the Arizona Treasurer to invest up to 10% of state funds in Bitcoin and other cryptocurrencies. In a letter to Arizona Senate President Warren Peterson, Katie Hobbs wrote: "Arizona's retirement funds are not suitable for the state to try untested investments like virtual currencies." It is worth mentioning that the Arizona Senate approved the Bitcoin Reserve Bill SB 1373 and sent it to Governor Katie Hobbs for final decision.

Although SB 1025 was rejected, a separate bill was eventually passed and signed into law a few days later. Arizona legislative records show that HB 2749 has been officially signed into law by the governor, marking the establishment of the state's first crypto reserve. The reserve is not used for investment, but receives unclaimed virtual assets, airdrops, and staking rewards, and keeps them stored 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 of more than $500 billion and sets a maximum holding limit of 5% of the total reserve funds, other bills are still awaiting consideration by local lawmakers.

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

The Texas House of Representatives Committee has passed SB 21, which intends to establish a state-level Bitcoin reserve. The bill passed by a vote of 9-4, having previously received overwhelming support in the state Senate of 25-5. If it is passed by the entire House of Representatives before June 2, it will be submitted to Governor Greg Abbott for his signature.

Other states, such as Alabama and Minnesota, have also introduced bitcoin reserve bills but remain far behind in the legislative process.

According to BitcoinLaws data, there are currently a total of approximately 36 bills related to national Bitcoin reserves that are still in progress.

Related reading: New Hampshire signs the nation’s first state Bitcoin reserve bill, more crypto legislation is in the works, and other states may follow suit