Arizona and Utah are leading the push for state-level Bitcoin reserves

In Utah, a bill allowing up to 5% of several major state funds to be invested in digital assets is one step away from becoming law

Arizona and Utah are leading the push for state-level Bitcoin reserves, advancing key legislative proposals while similar efforts in other states have stalled, according to Bitcoin Laws.

In Utah, a bill allowing up to 5% of several major state funds to be invested in digital assets is one step away from becoming law. The measure, which has already passed the House and a Senate committee, puts Utah in pole position in the race to establish a state-backed Bitcoin reserve.

The state’s House Economic Development Committee has a strong track record, increasing the bill’s chances of final passage, according to Satoshi Action Fund co-founder Dennis Porter.

Meanwhile, Arizona’s Strategic Bitcoin Reserve Act took another step forward on Thursday when it passed its third Senate reading with a 17-11-2 vote. The bill, which aims to allocate up to 10% of state and public funds — including pension funds — to Bitcoin, now heads to the Arizona House for further debate.

A separate measure, the Strategic Digital Assets Reserve Act, which would create a state-run crypto reserve fund using seized digital assets, has also advanced in the legislature.

These victories come as other states back away from similar efforts. Bills proposing state-level Bitcoin reserves have failed in Montana, Wyoming, Pennsylvania, South Dakota, and North Dakota, either through legislative votes or committee rejections.

While enthusiasm for Bitcoin reserves surged after the 2024 US election, falling Bitcoin prices and recent security concerns in the crypto market may have dampened momentum in some states.

Porter added that the bipartisan support for the Utah bill is a testament to the growing interest in Bitcoin across the political spectrum.output: In the past year, several US states have considered legislation to permit or mandate state-level Bitcoin reserves. These efforts began in Montana, where a bill to create a Bitcoin reserve using state treasury funds was introduced in January 2023.

The bill, which passed the state House but stalled in a Senate committee, would have allowed the state to invest up to 1% of its treasury funds in Bitcoin, aiming to diversify the state’s assets and generate additional revenue.

The bill’s defeat came as no surprise, given Montana’s history of rejecting crypto-related proposals. In 2022, the state Senate voted down a bill that would have recognized Bitcoin as legal tender in the state, while a bill to create a framework for crypto mining was tabled indefinitely.

Despite this setback, the focus on state-level Bitcoin reserves shifted to Wyoming, where a bill to permit state funds to be invested in crypto was advanced by a key House committee in March.

The bipartisan support for the measure, which would amend existing banking laws to allow state funds to be invested in cryptocurrencies, highlighted the growing interest in Bitcoin across the political spectrum.

However, the bill ultimately failed to pass the full House, dashing hopes of making Wyoming the first state to explicitly permit state-level Bitcoin reserves.

As state lawmakers wrapped up their spring sessions, attention turned to Pennsylvania, where a bill to create a Bitcoin reserve was narrowly defeated in a House vote in May.

The bill, which passed a Senate committee and had bipartisan support, aimed to allocate a portion of the state’s pension funds to Bitcoin, with the goal of diversifying investments and generating additional revenue for the state.

The vote in the state House was 99-97 against the bill, highlighting the close division on the issue and the potential for a change in the upcoming session.

Meanwhile, South Dakota lawmakers advanced a bill that would have permitted, but not required, the state to invest in Bitcoin. The measure, which passed a key House committee and had bipartisan support, aimed to provide the state treasurer with the authority to invest in Bitcoin if deemed appropriate.

The bill, which was supported by the Satoshi Action Fund, aimed to create a framework for responsible and limited Bitcoin investment by the state, taking into account factors such as market volatility and economic conditions.

However, the bill ultimately failed to pass the full House, dashing hopes of making South Dakota a pioneer in state-level Bitcoin reserves.

Finally, North Dakota lawmakers tabled a bill that would have permitted the state to invest in Bitcoin and other cryptocurrencies. The measure, which passed a Senate committee and had bipartisan support, aimed to provide the state treasurer with the authority to diversify investments in response to market conditions.

The bill, which was supported by the Together Chain initiative, aimed to create a framework for responsible and limited crypto investment by the state, taking into account factors such as risk management and economic stability.

Despite this support, the bill ultimately failed to pass the full House, dashing hopes of making North Dakota a leader in state-level crypto reserves.

These efforts underscore the ongoing debate in the US over the role of cryptocurrencies in public finances and the need for innovative investment strategies to optimize economic performance and stability. As the crypto industry continues to evolve and interest in Bitcoin surges, expect