Arizona, Kentucky, Oklahoma Advance Bitcoin Reserve Legislation

Over half of the United States, specifically 26 out of 50 states, have introduced legislation aimed at establishing Bitcoin reserves. This legislative push underscores a growing recognition of the potential benefits of integrating Bitcoin into state financial strategies. Wisconsin has taken a significant step in this direction by becoming the first state to purchase a Bitcoin ETF, holding $588 million as of the fourth quarter of 2024.

Arizona has emerged as a leader in this movement, with two Strategic Bitcoin Reserve (SBR) bills clearing the House Rules Committee on March 24. These bills are now poised to advance to the House floor for a full vote, positioning Arizona at the forefront of state-level Bitcoin adoption. The legislation in Arizona aims to ensure the transparent management of Bitcoin holdings and provide legal protections for cryptocurrency users, reflecting a broader trend of state-level recognition and support for Bitcoin.

Kentucky has also made substantial progress in this area. Governor Andy Beshear signed the “Bitcoin Rights” bill into law on March 24, following unanimous support in both chambers of the state legislature. This legislation, known as House Bill 701, ensures the right to self-custody digital assets, operate a node, and use cryptocurrency without fear of discrimination. It also prohibits local zoning laws that unfairly target crypto mining operations and removes mining from money transmitter licensing requirements. Kentucky lawmakers are also considering a separate proposal that would allow the state to allocate up to 10% of its excess reserves into digital assets, including Bitcoin.

Oklahoma is another state actively pursuing Bitcoin reserve legislation. The Strategic Bitcoin Reserve Act (HB 1203) passed the House of Representatives with a 77-15 vote and is now headed to the state Senate. If approved, it will move to Governor Kevin Stitt for final consideration. Additionally, Oklahoma State Senator Dusty Deevers has proposed legislation allowing state employees to receive salaries in Bitcoin. This move aligns with similar efforts in Arizona and Missouri, where lawmakers are also evaluating Bitcoin reserve proposals.

The introduction of these bills reflects a broader trend of state-level recognition and support for Bitcoin. The legislation in Kentucky, Oklahoma, and Arizona signals a growing acceptance of cryptocurrency as a viable financial asset. The bills aim to ensure the transparent management of Bitcoin holdings and provide legal protections for cryptocurrency users. This trend is likely to continue as more states explore the potential benefits of integrating Bitcoin into their financial strategies. The growing number of states introducing Bitcoin reserve legislation highlights the increasing importance of cryptocurrency in the U.S. financial landscape.