Bitcoin News Today: Three States Adopt Bitcoin Reserves, Texas Leads with 500 Billion Market Cap Requirement

Three states in the U.S. have successfully passed laws enabling Bitcoin reserves, marking a significant step in the integration of digital assets into state financial strategies. These states are New Hampshire, Arizona, and Texas. New Hampshire was the first to adopt such legislation in early May with the passage of HB 302, which allows the state to allocate up to 5% of public funds into precious metals and digital assets. The law specifies that digital assets must have an average market capitalization of at least $500 billion over the past calendar year, effectively limiting the options to Bitcoin. Governor Kelly Ayotte signed the bill, emphasizing the state's commitment to innovation and financial foresight.

Arizona's journey with Bitcoin reserves has been more tumultuous. In May 2025, the state passed HB 2749, which updated unclaimed property laws to allow crypto assets to be held in their original form. This move opened the door for the state to maintain custody of seized or forfeited Bitcoin. However, two subsequent bills, SB 1025 and HB 2324, were vetoed by Governor Katie Hobbs. SB 1025 aimed to allow state treasurers and retirement systems to allocate up to 10% of state funds into digital assets, but Hobbs vetoed it, citing concerns about the volatility and untested nature of virtual currency. HB 2324 sought to create a "Bitcoin and Digital Assets Reserve Fund," but it was also vetoed due to concerns about disincentivizing local law enforcement from working with the state on digital asset forfeiture.

Texas has been the most aggressive in adopting Bitcoin reserve legislation. In June 2025, Governor Greg Abbott signed Senate Bill 21 and House Bill 4488 into law, establishing the Texas Strategic Bitcoin Reserve. The law includes robust legal protections to ensure the reserve cannot be easily dismantled by future legislatures. Texas' law allows Bitcoin and potentially other digital assets to enter the reserve through purchases, forks, airdrops, or donations, but only those with a market capitalization of at least $500 billion over a 24-month period are eligible, effectively limiting the reserve to Bitcoin.

Several other states have attempted to follow similar initiatives but have faced political resistance and financial concerns. In Montana, House Bill 429, which would have allowed the state to allocate up to $50 million into a combination of crypto, stablecoins, and precious metals, failed to gain enough support and was killed before reaching a full vote. Similar efforts in North Dakota, Pennsylvania, and Wyoming have also failed. South Dakota's proposal to allocate up to 10% of state funds to Bitcoin investments was deferred indefinitely by the House Commerce and Energy Committee. In Utah, a broader blockchain-related bill passed, but provisions authorizing a Bitcoin reserve were stripped out. Lawmakers in these states cited concerns over Bitcoin’s price fluctuations, potential legal liability, and questions regarding the long-term viability of crypto as a reserve asset.

Despite these setbacks, proposals for Bitcoin reserve laws are still pending in 17 more states, including Alabama, Florida, Georgia, Idaho, Illinois, Kansas, Kentucky, Maine, Maryland, Michigan, Missouri, New Mexico, North Carolina, Ohio, Oklahoma, Rhode Island, and West Virginia. Crypto advocates continue to push for wider adoption, hoping to leverage the potential benefits of digital assets in state financial strategies. The varying definitions of a "Bitcoin reserve" across states reflect the diverse approaches to integrating digital assets into public finance, with some measures focusing on active purchases and others on retaining seized digital assets.