USDWeekly State Bitcoin Reserves Update: 18 Advancing, 4 Rejecting, and More on the Line
Montana Rejects Bitcoin Reserve Bill, Joining Growing List of States with Similar Rejections
Montana recently attempted to invest public funds in Bitcoin but faced significant legislative opposition, resulting in the rejection of House Bill 429, which sought to allocate up to $50 million for cryptocurrencies, stablecoins, and precious metals. Introduced by Rep. Curtis Schomer, the bill was aimed at diversifying state assets for potentially higher returns. Despite Bitcoin's considerable market cap of $1.8 trillion, it was voted down 41-59.
Montana joins North Dakota, Wyoming, and Pennsylvania in halting Bitcoin reserve proposals, while approximately 19 other states, including Arizona, Illinois, and Texas, are pursuing similar initiatives. For instance, Arizona's bill proposes allowing up to 10% of public funds for crypto investments. Meanwhile, international interest in Bitcoin reserves is growing, with countries like Switzerland and Brazil also exploring this strategy, reflecting a broader momentum towards integrating cryptocurrencies into public finance.
South Dakota Rejects Bitcoin Investment Bill; Lawmaker Plans Revival for Next Year
On February 25, 2025, South Dakota lawmakers rejected a proposed bill (HB1202) allowing the state to invest up to 10% of its public funds in Bitcoin, amid concerns over volatility and lack of intrinsic value, with the House Commerce and Energy Committee voting 9-3 to defer the bill effectively killing it. This decision followed Montana's recent defeat of a similar Bitcoin reserve bill, highlighting a growing resistance across states to embrace cryptocurrency investments.
Despite pushback, Rep. Logan Manhart plans to revive the proposal next year, arguing for the potential benefits of Bitcoin as a store of value in inflationary conditions. Currently, 18 state-level Bitcoin reserve initiatives are still pending, with states like Florida, Arizona, Utah, and Texas advancing their own proposals.
Ohio Introduces Bill to Exempt Cryptocurrency Transactions from Local Taxes
On February 24, 2025, Ohio introduced House Bill 116, the “Ohio Blockchain Basics Act,” which aims to exempt cryptocurrency transactions from additional taxes at the municipal level. This legislation, proposed by Representative Steve Demetriou and supported by five co-sponsors, stipulates that only existing taxes applicable to fiat currency will be enforced on digital assets, including cryptocurrencies, stablecoins, and NFTs. Importantly, the bill affirms the right of Ohio residents to self-custody their digital assets and participate in activities like mining and staking without needing a Money Service Business license.
Furthermore, it permits mining in residential areas while protecting mining companies in industrial zones from being unfairly penalized by local zoning changes. Additionally, the bill mandates state pension funds to evaluate and report on the risks and benefits of investing in crypto ETFs within a year. This initiative highlights Ohio's commitment to fostering a conducive environment for cryptocurrency investment and growth.
Oklahoma Advances Bitcoin Reserve Bill as 18 U.S. States Consider BTC Reserves
Oklahoma's House of Representatives has passed the Strategic Bitcoin Reserve Bill, allowing the state to invest up to 10% of public funds in Bitcoin and digital assets. This aligns with a broader trend, as 18 U.S. states are actively reviewing similar Bitcoin reserve proposals, while 33 others are considering the idea. Utah has progressed the furthest, advancing its bill to the second Senate chamber. At the federal level, Senator Cynthia Lummis introduced The Bitcoin Act, aiming for the U.S. to hold 5% of Bitcoin’s total supply.
Meanwhile, President Trump has directed his administration to explore a national Bitcoin stockpile, though no official executive orders have been issued. Analysts predict that if 20 states adopt Bitcoin reserves, it could lead to $23 billion in BTC purchases, significantly impacting the market. Institutions and governments are increasingly recognizing Bitcoin as a hedge against inflation and a strategic financial asset.
This article has been refined and enhanced by ChatGPT.
