States Embrace Bitcoin: Texas Leads Wave of Crypto Investment Proposals

From Texas to Massachusetts, a wave of state-level proposals is exploring the potential of Bitcoin reserves and crypto investments for public funds. As of now, 16 U.S. states are actively considering legislation in this area, with varying degrees of progress and specific details.

Texas has emerged as a leader in this movement with the Texas Strategic Bitcoin Reserve Act, referred to the Senate Finance Committee on February 7. This bill establishes guidelines for state Bitcoin ownership and allows Texas residents to donate Bitcoin to support community investment in the state's financial future. The Comptroller's Office would oversee the reserve's administration, implementing cold storage solutions and regular audits, while also enforcing strict security measures and prohibiting Bitcoin acquisitions from foreign entities or those involved in illegal activities.

Pennsylvania's House of Representatives introduced their Bitcoin reserve bill in November 2024, proposing to permit the state Treasurer to invest up to 10% of the State General Fund, Rainy Day Fund, and State Investment Fund in Bitcoin. This could potentially result in nearly $1 billion in Bitcoin purchases. Ohio joined the movement in December 2024, with State Representative Derek Merrin proposing the Ohio Bitcoin Reserve Act, which would create a Bitcoin fund in the state Treasury and give the State Treasurer discretionary power to purchase the asset.

New Hampshire's approach, introduced by Representative Keith Ammon in January 2025, doesn't explicitly mention Bitcoin but sets high market cap requirements that currently only Bitcoin meets. The bill would also allow the state treasurer to engage in lending or staking practices. Wyoming's proposal, put forward by five Republican senators, would allow up to 3% of several state funds to be invested in Bitcoin, specifying that Bitcoin must be held through secure custody solutions, qualified custodians, or ETFs.

Massachusetts Senator Peter Duran's bill would permit up to 10% of the state's rainy day fund to be invested in Bitcoin or other cryptocurrencies, including provisions for Bitcoin lending to generate additional returns for the state. Oklahoma's bill, introduced by Representative Cody Maynard, sets a $500 billion market cap requirement for eligible digital assets and limits digital asset investments to 10% of total public funds in any state account.

Utah's "Blockchain and Digital Innovation Amendments" bill has made the most progress, passing the House of Representatives and awaiting Senate approval.