U.S. States Advance Bitcoin Legislation to Enhance Reserves and Mining
In March 2025, U.S. states are increasingly adopting cryptocurrency in their financial systems. Key developments include:
- Kentucky enacted the “Blockchain Digital Asset Act” (HB701), allowing residents to hold Bitcoin and supporting crypto mining. The state accounts for 11% of the U.S. Bitcoin hashrate.
- North Carolina is proposing bills to invest public funds in digital assets, allowing up to 10% of state funds for strategic reserves, aimed at protecting against inflation.
- Arizona's SB1373 allows the creation of a digital asset reserve from seized criminal assets, with up to 10% investment potential. SB1025 enables similar investments from treasury and pension funds.
- Oklahoma's HB1203 permits investments in Bitcoin, stablecoins, and major digital assets from public funds.
- Over 20 states are considering similar legislation, with 23 states having introduced Bitcoin reserve bills that could lead to $23 billion in purchases.
The White House approved a Federal Strategic Bitcoin Reserve on March 7, further encouraging state alignment with national crypto policy. This trend signifies a shift towards integrating cryptocurrency into public finance.