Which U.S. states are considering establishing bitcoin reserves?
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Which U.S. states are considering establishing bitcoin reserves?
Currently, a total of 5 states plan to establish bitcoin reserves: Texas, Pennsylvania, Ohio, New Hampshire, and North Dakota.
Navigating Web3 tides with focused insightsAuthor: Liz Napolitano
Translation: Felix, PANews
Donald Trump and his political allies are pushing for the U.S. Treasury to establish a nationwide strategic bitcoin reserve.
Now, as bitcoin prices hit new highs since Election Day, several U.S. states are following suit.
To date, five states have introduced proposals to create strategic bitcoin reserves, while digital asset advocates are urging other state governments to follow.
Below are the five states considering bolstering their treasuries with the world’s most valuable cryptocurrency.
Texas
Texas lawmakers will soon consider whether to establish a strategic bitcoin reserve.
In December 2024, Texas Representative Giovanni Capriglione introduced a bill calling for the state to build a bitcoin reserve.
The proposed legislation mandates that Texas must hold bitcoin for at least five years. Under the bill, the cryptocurrency must be stored in cold storage (i.e., on devices not connected to the internet), and these assets cannot be used for transactions outside of Texas.
The bill states: "A strategic bitcoin reserve aligns with Texas’ commitment to advancing digital asset innovation and providing enhanced financial security for the people of Texas."
Finally, the proposal also allows Texans to make donations to the state's bitcoin fund.
Pennsylvania
In November 2024, the Pennsylvania House of Representatives introduced a bill calling for the creation of a strategic bitcoin reserve.
According to the Bitcoin Bill, the Pennsylvania Treasurer would be authorized to use up to 10% of the state’s general fund, emergency fund, and state investment funds to purchase bitcoin.
Allocating 10% of the state’s general fund would enable Pennsylvania’s treasury to buy nearly $1 billion worth of bitcoin.
In a legislative memo released on November 12, state lawmakers stated: "Bitcoin has significantly appreciated over the years and can help Pennsylvania keep pace with inflation and economic changes."
Ohio
On December 17, 2024, Ohio Representative Derek Merrin introduced a bill to establish a strategic bitcoin reserve in the state.
The Ohio Bitcoin Reserve Act requires the creation of a bitcoin fund within the state treasury. It also grants the Ohio Treasurer discretionary authority to purchase the asset.
Derek Merrin tweeted: "Ohio must embrace technology and protect tax revenues from erosion."
While some details about how the reserve would operate remain unclear, the draft legislation is expected to form part of Ohio lawmakers’ agenda in 2025.
New Hampshire
On January 10, 2025, New Hampshire Representative Keith Ammon introduced a bill proposing a "strategic reserve" that would allow the state treasury to invest in precious metals (such as gold, silver, and platinum) as well as digital assets—including bitcoin. Although bitcoin is not explicitly named in the bill, it is currently the only cryptocurrency meeting the high market capitalization requirement.
The bill introduces new definitions for "qualified custodians" and "secure custody solutions" to ensure the safekeeping of digital assets, with operations conducted through regulated and approved financial products.
"Whether we like it or not, we’re tied to the dollar, but this would allow the state to allocate a small portion of its funds into this uncorrelated new asset class," said Keith Ammon.
Under the bill, the New Hampshire Treasurer would also have the authority to engage in activities such as lending or staking.
"The last state to establish a bitcoin reserve will lose out," added Keith Ammon. "States must act early, which will require some education among state officials."
North Dakota
On January 10, 2025, North Dakota lawmakers introduced a resolution aiming to "invest a portion of state funds in digital assets and precious metals," seeking to hedge against inflation by diversifying the state’s investment portfolio. The resolution notes: "Given changing economic conditions and emerging investment opportunities, prudent investment of state financial resources is required."
The initial resolution will be discussed in the coming days and may eventually lead to a formal bill being drafted and submitted. Notably, while the brief resolution encourages investment in digital assets, it does not specify any particular asset. John Bjornson, Director of the North Dakota Legislative Council, said such specifics "are better suited for a bill."
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