Why Most US State Bitcoin Reserve Bills Face Rejection: A State-by-State Breakdown

The push for state-level Bitcoin reserve initiatives has hit significant headwinds across America. While more than half of the 50 U.S. states proposed or considered legislation around Bitcoin and digital asset reserves, the reality on the ground tells a different story—most have been rejected, shelved, or substantially watered down.

States That Rejected Bitcoin Deposit and Reserve Initiatives

The Direct Rejections

Oklahoma took a decisive stand in April when its Senate Finance and Taxation Committee voted 6-5 to reject HB 1203, the Strategic Bitcoin Reserve Act. The proposal would have permitted the state to allocate up to 5% of four separate funds into Bitcoin or digital assets with market capitalizations exceeding $500 billion. Despite the close vote, the rejection stuck.

Montana lawmakers defeated House Bill 429 on February 21 by a vote of 59-41. The bill proposed investing up to $50 million in Bitcoin, stablecoins, and precious metals. Even with Democratic support arguing for asset diversification, the measure couldn’t gain traction.

South Dakota’s HB 1202 faced a similar fate, losing 9-3 in the House Commerce and Energy Committee on February 24. The proposal would have invested up to 10% of state public funds into Bitcoin, but concerns about volatility proved decisive.

North Dakota rejected HB 1184, which aimed to explore Bitcoin reserve feasibility. The House voted 57 against, 32 in favor. The state remains open to a softer approach through a pending resolution on digital assets.

Wyoming saw its mid-January Bitcoin reserve proposal killed on February 6, with only one of eight committee members supporting the initiative. The bill sought to invest state funds in Bitcoin.

Arizona experienced a gubernatorial veto of SB 1025 in early May. Governor Katie Hobbs rejected the bill that would have authorized up to 10% of state funds in Bitcoin, citing concerns about untested investments. However, Arizona later passed HB 2749, a narrower crypto reserve focusing on unclaimed assets and staking rewards rather than active investment.

Shelved and Withdrawn Initiatives

Florida withdrew both HB 487 and SB 550 in early May, which would have allocated up to 10% of certain public funds to Bitcoin. The bills never reached the floor for a vote.

New Mexico’s SB 275, proposing a 5% Bitcoin investment allocation, was shelved in the Senate Taxation, Commerce and Transportation Committee in February.

Utah saw its Bitcoin reserve provision removed from blockchain legislation. While HB 2030 passed in March, the strategic reserve clause was deleted before passage, leaving only provisions for individual node operation and staking participation.

Pennsylvania’s HB 2664 has been effectively killed. The Republican-led bill, co-sponsored by Rep. Michael Cabell and Rep. Aaron Kauffer and introduced in November, would have authorized Pennsylvania’s treasurer to invest up to 10% of state funds in Bitcoin through custody solutions or exchange-traded products.

Why Bitcoin Deposit and Reserve Bills Get Rejected

Several patterns emerge from these rejections:

Volatility Concerns dominate official objections. State investment officials and governors repeatedly cite Bitcoin’s price fluctuations as unsuitable for public pension and reserve funds designed for stability.

Fiduciary Responsibility weighs heavily on decision-makers. Lawmakers struggle to justify speculative cryptocurrency investments with taxpayer money, especially when digital assets remain subject to regulatory uncertainty.

Tight Votes Indicate Divided Support across both parties. Even when bills advance, the closeness of votes—Oklahoma’s 6-5, Montana’s 59-41—demonstrates that enthusiasm for state Bitcoin reserves hasn’t crossed a threshold where support feels politically safe.

States Still Moving Forward

New Hampshire became the first state to pass a strategic Bitcoin reserve bill, authorizing the treasurer to purchase digital assets with market values exceeding $500 billion, capped at 5% of total reserve funds.

North Carolina’s House passed the Digital Asset Investment Act (HB 92), authorizing treasury investment in qualified digital assets up to 5% (reduced from an initial 10% proposal).

Texas shows momentum with SB 21 passing its House Committee 9-4 after overwhelming Senate support (25-5), pending final House consideration before June 2.

The Outlook

Approximately 36 Bitcoin and digital asset reserve bills remain in various legislative stages nationwide. The pattern of rejections suggests state governments remain cautious about cryptocurrency as a reserve asset, even as technological adoption accelerates. Whether these initial failures represent a temporary roadblock or a longer-term barrier to institutional adoption at the state level remains an open question for the digital asset community.