Which US states are considering establishing Bitcoin reserves?

Reprinted from panewslab

01/13/2025·0M

Compiled by: Felix, PANews

Donald Trump and his political allies are pushing the U.S. Treasury Department to create a nationwide reserve of Bitcoin.

Now, as Bitcoin prices continue to hit new highs since Election Day, some U.S. states are starting to follow suit.

So far, five states have proposed proposals to establish strategic Bitcoin reserves, and digital asset advocates have called on other state governments to establish Bitcoin reserves.

Here are five states considering filling their coffers with the world’s most valuable digital currency.

Texas

Texas lawmakers will soon weigh in on whether a strategic Bitcoin reserve should be established.

In December 2024, Texas Rep. Giovanni Capriglione introduced a bill calling for Texas to establish a Bitcoin reserve.

The draft legislation stipulates that Texas must hold Bitcoin for at least five years. Under the bill, cryptocurrencies must be stored cold (i.e., kept on some kind of device that is not connected to the internet), and the assets cannot be traded outside of Texas.

“A strategic Bitcoin reserve is consistent with Texas’ commitment to promoting digital asset innovation and providing enhanced financial security to the people of Texas,” the bill reads.

Finally, the proposal would also allow Texans to donate to the state’s Bitcoin fund.

pennsylvania

The Pennsylvania House of Representatives introduced a bill in November 2024 calling for the establishment of a strategic Bitcoin reserve.

Under the Bitcoin bill, Pennsylvania’s treasurer will be able to use “up to 10%” of the state’s general fund, emergency fund and state investment fund to purchase Bitcoin.

Dipping into 10% of the state’s general fund would allow the Pennsylvania Department of the Treasury to purchase nearly $1 billion worth of Bitcoin.

“Bitcoin has appreciated significantly over the years and can help Pennsylvania keep pace with inflation and economic changes,” state lawmakers said in a legislative memo released on Nov. 12.

Ohio

Ohio Rep. Derek Merrin introduced a bill on December 17, 2024 to establish a strategic Bitcoin reserve in Ohio.

The Ohio Bitcoin Reserve Act requires the establishment of a Bitcoin fund in the state’s treasury. It also gives the Ohio Treasurer discretion to purchase the property.

“Ohio must embrace technology and protect tax revenue from being eroded,” Derek Merrin tweeted.

While some details of how the reserve would work are unclear, the draft legislation is expected to serve as a framework for Ohio lawmakers to enact in 2025.

new hampshire

New Hampshire Rep. Keith Ammon introduced a bill on January 10, 2025, proposing to establish a “strategic reserve” that would allow the state treasury to invest in precious metals (such as gold, silver, platinum) and digital assets (including Bitcoin). Although Bitcoin is not mentioned by name in the bill, it is currently the only cryptocurrency that meets the high market capitalization requirement.

The bill will introduce new regulations to clarify the definitions of "qualified custodians" and "secure custody solutions" to ensure the safe custody of digital assets and operate through regulatory-approved trading products.

"Whether we like it or not, we are pegged to the dollar, but this will allow us to have state governments invest a small portion of their money in this new, uncorrelated asset class," Keith Ammon said.

Under the bill, the New Hampshire Treasurer would also have the authority to engage in "lending or pledging" activities.

“The last state to establish a Bitcoin reserve will fail,” Keith Ammon added. “States must take action early, and that will require outreach to some state officials.”

north dakota

North Dakota lawmakers introduced a resolution on January 10, 2025, to “invest a portion of state funds in digital assets and precious metals.” Curb the fiscal impact of inflation by diversifying the assets in which the state invests. "Given that changing economic conditions and emerging investment opportunities require prudent investment of the nation's fiscal resources," the resolution states.

Preliminary resolutions will be discussed in the coming days, and a formal bill may eventually be drafted and submitted. Notably, although digital asset investments are encouraged in the brief resolution, no specific assets are mentioned. North Dakota Legislature Director John Bjornson said such a definition "fits the bill better."