In early 2025, the idea of U.S. states holding Bitcoin as a strategic reserve gained traction. Advocates saw it as a hedge against inflation and a way to modernize public finance. However, recent developments indicate that this momentum is waning. Several states have halted or withdrawn their Bitcoin reserve proposals, citing various concerns.
New Hampshire Leads the Way
On May 6, New Hampshire became the first U.S. state to establish a cryptocurrency reserve. Governor Kelly Ayotte signed HB 302 into law, allowing the state treasurer to allocate up to 5% of public funds into precious metals and digital assets with a market capitalization exceeding $500 billion—currently, only Bitcoin qualifies. The assets will be securely stored through a custody solution or an exchange-traded product. The law is set to take effect in 60 days.
Florida Withdraws Bitcoin Reserve Bills
In contrast, Florida has decided to halt progress on its Bitcoin reserve initiatives. Two bills—House Bill 487 and Senate Bill 550—aimed at establishing a state-held Bitcoin reserve were indefinitely postponed. The decision reflects growing legislative hesitance and concerns over the volatility and regulatory uncertainties associated with cryptocurrencies.
Arizona’s Veto Reflects Broader Concerns
Arizona’s attempt to create a Bitcoin reserve was also unsuccessful. Governor Katie Hobbs vetoed the Digital Assets Strategic Reserve bill on May 2, citing concerns over using public funds for “untested assets.” The bill had passed the state legislature and would have allowed Arizona to invest seized funds into Bitcoin.
Nationwide Trend of Rejection
Florida and Arizona are not alone in stepping back from Bitcoin reserve plans. States like Montana, Wyoming, North Dakota, Pennsylvania, and South Dakota have also seen their Bitcoin reserve bills fail to advance. Legislative support is thinning, with most proposals stalling before a floor vote.
Federal Initiatives Face Challenges
At the federal level, President Donald Trump floated plans for a strategic Bitcoin reserve shortly after taking office. The proposal aimed to turn the U.S. into the world’s cryptocurrency capital. However, the plan has faced significant hurdles, including the need for congressional approval and lack of support from some Republican lawmakers. The initiative’s reliance on seized assets, rather than new acquisitions, has also been a point of contention.
Global Perspectives on Bitcoin Reserves
Internationally, the concept of government-held Bitcoin reserves has met with skepticism. The United Kingdom, for instance, has rejected the idea, with Treasury officials stating that it’s “not appropriate for our market.” Similarly, countries like Japan, South Korea, and Switzerland have dismissed proposals to include Bitcoin in their national reserves, citing concerns over volatility and financial stability.
While New Hampshire’s move to establish a Bitcoin reserve marks a significant development, the broader trend among U.S. states is one of caution and retreat. Legislative hesitance, concerns over volatility, and regulatory uncertainties have led many states to halt or withdraw their Bitcoin reserve proposals. As the debate continues, the future of state-held cryptocurrency reserves remains uncertain.
