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"Bitcoin Fever Sweeps US States: 16 Explore Crypto for Public Funds"

Coin WorldFriday, Feb 7, 2025 7:01 am ET

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A Third of All US States Now Exploring Bitcoin, Crypto for Public Funds

In a significant shift in fiscal policy, a growing number of US states are exploring the use of Bitcoin and other cryptocurrencies for public funds. As of February 7, 2025, 16 out of 50 US states have ongoing legislative considerations regarding the establishment of strategic Bitcoin reserves or enabling crypto investments for public funds.

Utah is leading the charge, with its Blockchain and Digital Innovation Amendments bill passing the House with an 8 to 1 majority vote on January 28. The bill, if enacted, would allow the state treasurer to allocate up to 5% of certain public funds to "qualifying digital assets," provided they have a market capitalization of over $500 billion averaged over the past 12 months. While the bill does not explicitly mention Bitcoin, it is the only cryptocurrency that meets the market capitalization requirement.

Dennis Porter, CEO of Satoshi Act Fund, has argued that the bill is misleading due to Utah's Money Transmitter Act. However, the bill's potential implementation could pave the way for other states to follow suit.

North Dakota's proposal was notably rejected on February 4, but several other states are considering similar moves. New Mexico became the latest entrant, with Senator Anthony L. Thornton introducing the Strategic Bitcoin Reserve Act (SB275) on February 4, proposing a 5% allocation of public funds to Bitcoin.

Arizona's Senate Finance Committee has advanced similar legislation, passing SB1025, which would permit up to 10% of public funds, including pension systems, to invest in cryptocurrencies. Wyoming and Massachusetts have also joined the race, with the latter opening its rainy day funds to be invested in Bitcoin or any digital asset for up to 10% of its stabilization fund.

Texas has taken a different approach, with dual proposals. The state has a Senate bill in the works that would allow up to 1% allocation from its general revenue fund balance. Additionally, a separate House bill focuses on Bitcoin donations, with provisions for crypto payment conversions to Bitcoin. Neither bill has advanced to law yet.

From Oklahoma to Missouri, and Ohio, various states in the US have either proposed or pending bills related to the use of Bitcoin and cryptoc

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