Despite New Hampshire's signing of the first state Bitcoin reserve bill in the United States, the fate of many such bills remains uncertain. In multiple states, proposals to invest public funds in this leading cryptocurrency have faced rejection, stalling several state-level Bitcoin reserve initiatives.

Among the 50 US states, over half have introduced or are considering legislation related to Bitcoin reserves or digital asset investments. However, the outcomes of many of these bills are still unclear. While some have successfully passed, establishing frameworks for state-level crypto reserves, others have not gone as planned. 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. House Bill HB 487 and Senate Bill SB 550 both sought to allocate up to 10% of specific public funds to this top cryptocurrency, with HB 487 proposing to add all tax revenues paid in Bitcoin to a general reserve fund that it was originally intended to create. Neither bill was submitted for consideration in the Florida House of Representatives or Senate, as they were withdrawn at the end of the legislative session on May 3.

Oklahoma

On April 16, the Oklahoma Senate Appropriations and Budget Committee rejected House Bill HB 1203, the "Strategic Bitcoin Reserve Act," by a vote of 6 to 5, marking the failure of the state's attempt to establish a Bitcoin reserve. The bill would have allowed the state to invest up to 5% of funds from four separate state funds in Bitcoin or any other digital asset with an average market capitalization exceeding $500 billion over the past year. Currently, only Bitcoin meets this criterion. Although the bill was rejected, one representative who was originally expected to vote against it changed her stance on the day of the vote, supporting the bill after being persuaded by pro-Bitcoin constituents.

Utah

Although Utah's bill was not formally rejected or voted down, the state's plan to establish a strategic Bitcoin reserve fell through in March when a provision that would have enabled the creation of a 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 reserve provision was removed. It established rights for individuals to operate blockchain nodes and participate in staking. The bill was officially signed by the state governor on March 25.

New Mexico

New Mexico's Senate Bill SB 275, which aimed to invest 5% of the state's fiscal funds in Bitcoin, was tabled after being submitted to the Senate Taxation, Commerce, and Transportation Committee in early February. According to SourceNM, the bill's sponsor, Republican Anthony Thornton, indicated that he would reintroduce the bill in the future.

Montana

Montana's Bitcoin reserve proposal, House Bill No. 429, encountered difficulties after being introduced in late January. The bill sought to allocate up to $50 million of public funds for Bitcoin, stablecoins, and precious metals. Despite support from Representative Curtis Schomer, who argued that the bill would help diversify the state's assets and potentially yield higher returns, the proposal was defeated in the House of Representatives on February 21 by a vote of 59 to 41.

South Dakota

South Dakota's House Bill HB 1202, which proposed investing up to 10% of the state's public funds in Bitcoin, was rejected by the House Business and Energy Committee on February 24 with a vote of 9 against and 3 in favor. Although the bill's sponsor, Representative Logan Manhart, believed that Bitcoin could serve as a hedge against inflation, South Dakota's investment officer Matt Clark warned about the asset's volatility.

North Dakota

North Dakota's House Bill HB 1184, which aimed to explore the feasibility of establishing a Bitcoin reserve, failed to pass in the House of Representatives with a vote of 57 against and 32 in favor. However, this does not mean that North Dakota, known as the "Peace Garden State," has completely abandoned cryptocurrency-related initiatives. According to Legiscan, the North Dakota Legislative Assembly is still considering a resolution proposed by Republicans, which encourages the state treasurer and the state investment board to invest a portion of state funds in digital assets and precious metals. The resolution has already passed the second reading in the North Dakota House of Representatives and will be submitted to the Senate Industry and Business Committee for further review.

Pennsylvania

Pennsylvania's House Bill HB 2664, which proposed investing up to 10% of the state's funds in Bitcoin, has effectively been rejected. The bill, led by Republicans and co-sponsored by Representatives Michael Caballero and Aaron Kaufer, was first introduced in November last year. It would have authorized the Pennsylvania treasurer to invest in cryptocurrencies, with public funds being allocated to these digital assets through secure custody solutions or invested in exchange-traded products that track the prices of digital assets like Bitcoin.

Wyoming

Wyoming's bill, introduced in mid-January, was rejected by a state committee on February 6. Records from the state legislature show that only one of the eight committee members supported the initiative. The bill called for the investment of state general funds and permanent funds in Bitcoin. According to the bill, up to 10% of the general fund, the permanent Wyoming mineral trust fund, and the permanent land fund could be allocated to the largest market-cap digital asset.

Arizona

Arizona's "Strategic Bitcoin Reserve Act" (SB 1025) made it all the way to Governor Katie Hobbs' desk but ultimately failed when Hobbs vetoed the bill in early May. If passed, the bill would have allowed the Arizona treasurer to invest up to 10% of the state's funds in Bitcoin and other cryptocurrencies. In a letter to Arizona Senate President Warren Petersen, Hobbs wrote, "Arizona's retirement funds are not suitable for the state to experiment with untested investments like virtual currencies." It is worth noting that the Arizona Senate had approved a separate Bitcoin reserve bill, SB 1373, and sent it to Governor Hobbs for a final decision. Despite the veto of SB 1025, a separate bill was eventually passed and signed into law a few days later. Arizona legislative records show that House Bill HB 2749 has been officially signed by the governor, marking the state's first crypto reserve. This reserve is not for investment purposes but for holding unclaimed virtual assets, airdrops, and staking rewards 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 cap exceeding $500 billion and sets a maximum holding limit of 5% of the total reserve funds, other bills are still under review by lawmakers in various states.

North Carolina's House of Representatives passed the "Digital Asset Investment Act" (HB 92), which authorizes the state treasurer to invest in qualified digital assets. The early version of the bill proposed that digital asset investments should not exceed 10% of the fund's total amount, but the version ultimately passed by the House of Representatives set the limit at 5%. The bill has now been submitted to the Senate for review.

Texas's House committee has passed Senate Bill SB 21, which aims to establish a state-level Bitcoin reserve. The bill passed with a 9-4 vote after previously receiving overwhelming support in the Senate with a 25-5 vote. If it passes the full House by June 2, it will be sent to Governor Greg Abbott for his signature.

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

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