The Bitcoin Reserve Bill has been thwarted, with some states in the U.S. casting opposing votes.

Author: Decrypt

Compiled by: Felix, PANews (This article has been modified)

Original Title: Which States in the U.S. Have Rejected Bitcoin Reserve Bills?

After multiple states vetoed bills to invest public funds in this leading cryptocurrency, some state-level Bitcoin reserve proposals in the U.S. have encountered obstacles.

In the 50 states of the United States, more than half of the states have proposed or are considering legislation related to Bitcoin reserves or digital asset investments, but the outcomes of many of these bills remain unclear.

Some bills have successfully passed, establishing a framework for state-level crypto reserves, but many bills have not gone as planned. Let’s take a look at which states have rejected Bitcoin reserve bills?

Florida

In early May, the Sunshine State of Florida postponed and withdrew two bills aimed at incorporating Bitcoin into the state's finances.

Both House Bill HB 487 and Senate Bill SB 550 attempt to allocate up to 10% of certain public funds to this top cryptocurrency, with Bill HB 487 adding all taxes paid in Bitcoin to the general reserve fund it is supposed to create.

Neither of these bills was submitted to the Florida House of Representatives or Senate for consideration, as they were withdrawn at the end of the legislative session on May 3.

Oklahoma

On April 16, the Oklahoma Senate Finance and Taxation Committee voted 6 to 5 against Bill HB 1203, known as the Strategic Bitcoin Reserve Act, marking a failed attempt to establish a Bitcoin reserve in the state.

The bill originally allowed the state to invest up to 5% from four separate state funds in Bitcoin or any other digital asset that averaged a market value of over 500 billion dollars in the past year. Currently, only Bitcoin meets this criterion.

Despite the bill being rejected, a representative who was originally expected to vote against it changed her stance on the afternoon of the vote and supported the bill, stating that she was persuaded by voters who support Bitcoin.

Utah

Although the bill in the state was neither vetoed nor voted down, the plan for Utah to establish a strategic Bitcoin reserve fell through in March when a provision that could have allowed the state to create the reserve was removed from a blockchain bill.

The "Blockchain and Digital Innovation Amendment" (HB 2030) passed the Utah Senate with 19 votes in favor and 7 against after removing reserve clauses, establishing individuals' rights to operate blockchain nodes and participate in staking. The bill was officially signed by the state's governor on March 25.

New Mexico

The SB 275 bill in New Mexico, which aims to invest 5% of state financial funds in Bitcoin, was submitted to the Senate Tax, Business and Transportation Committee in early February and has since been shelved.

According to SourceNM, the bill's sponsor, Republican Anthony Thornton, stated that he will reintroduce the bill in the future.

Montana

The Bitcoin reserve proposal in Montana, House Bill 429, has faced difficulties since it was introduced in late January. The bill aims to allocate up to $50 million in public funds for Bitcoin, stablecoins, and precious metals.

Although Congressman Curtis Schomer supports the bill, believing that it helps diversify state assets and may yield higher returns, the proposal was defeated in the House on February 21 with a vote of 59 to 41.

South Dakota

The HB 1202 proposal in South Dakota suggested investing up to 10% of the state’s public funds in Bitcoin, but was defeated on February 24 in the House Commerce and Energy Committee with a vote of 9 against and 3 in favor.

Although the bill's sponsor, Congressman Logan Manhart, believes that Bitcoin can retain its value in an inflationary environment, South Dakota investment official Matt Clark has raised concerns about the asset's volatility.

North Dakota

The proposal HB 1184 in North Dakota aims to explore the feasibility of establishing a Bitcoin reserve, but failed to pass in the House vote with 57 votes against and 32 votes in favor.

However, this does not mean that "Peace Garden State" (North Dakota) has completely abandoned initiatives related to cryptocurrency. The Legiscan website shows that the North Dakota Legislative Assembly is still considering a resolution proposed by Republicans that encourages the state treasurer and the state investment board to allocate some state funds into digital assets and precious metals.

According to state government records, the resolution has passed the second reading in the North Dakota House of Representatives and will be submitted to the state Senate's Industry and Business Committee for further review.

Pennsylvania

The Pennsylvania HB 2664 bill had proposed to invest up to 10% of the state's funds in Bitcoin, but the bill has actually been rejected.

This bill, led by the Republican Party and jointly initiated by Representatives Michael Capuano and Aaron Cauffman, was first introduced last November. The bill would authorize the Pennsylvania State Treasurer to invest in cryptocurrencies, allowing public funds to be allocated to these digital assets through secure custodial solutions or to invest in exchange-traded products that track the prices of digital assets such as Bitcoin.

Wyoming

Wyoming's bill, introduced in mid-January, was rejected by the state committee on Feb. 6, and records from the state legislature show that only one of the eight lawmakers supported the initiative.

The bill calls for state government funds and permanent funds to be invested in Bitcoin. According to the bill, funds from the General Fund, the Permanent Wyoming Mineral Trust Fund, and the Permanent Land Fund may be invested up to the maximum in the largest digital assets by market capitalization.

Arizona

The "Arizona Strategic Bitcoin Reserve Act" (SB 1025) in Arizona had made its way to Governor Katie Hobbs' desk, but ultimately failed as Katie Hobbs vetoed the bill in early May.

If the bill is passed, it will allow the Arizona State Treasurer to invest up to 10% of state government funds into Bitcoin and other cryptocurrencies. Katie Hobbs wrote in a letter to Arizona Senate President Warren Petersen, "Arizona's pension funds are not suitable for the state to attempt untested investments like virtual currencies." It is worth mentioning that the Arizona Senate approved the Bitcoin Reserve Bill SB 1373 and sent it to Governor Katie Hobbs for a final decision.

Although the SB 1025 bill was rejected, a separate bill was eventually passed and signed into law a few days later. Arizona's legislative records show that the HB 2749 bill has been officially signed into law by the governor, marking the establishment of the state's first cryptocurrency reserve. This reserve is not used for investment but is intended to receive unclaimed virtual assets, airdrops, and staking rewards, and store them in their native form.

Outlook

Although New Hampshire is the first state to pass a strategic Bitcoin reserve bill, which authorizes the state treasurer to purchase Bitcoin or digital assets with a market value exceeding $500 billion, and sets a holding limit of 5% of total reserve funds. However, several other bills are still pending review by lawmakers in various locations.

The North Carolina House of Representatives passed the Digital Asset Investment Act (HB 92), authorizing the state treasury department to invest in qualified digital assets. An earlier version of the bill proposed that investments in digital assets should not exceed 10% of the total fund, but the version ultimately passed by the House adjusted the cap to 5%. The bill has now been submitted to the Senate for review.

A Texas House of Representatives committee has passed SB 21 to create a state-level Bitcoin reserve. The bill, which passed by 9-4 votes, had previously received overwhelming 25-5 support in the state Senate. If passed by the House of Representatives by June 2, it will be submitted to Governor Greg Abbott for signature.

Other states, such as Alabama and Minnesota, have also proposed Bitcoin reserve bills, but they are still far behind in the legislative process.

According to BitcoinLaws data, there are currently about 36 bills related to national Bitcoin reserves in progress.