States Take the Lead on Strategic Bitcoin Reserves: A Step Towards Modernizing State Treasuries

Strategic Insights -

The U.S. government and a handful of states are experimenting with new strategies for financial resilience, including the creation of Strategic Bitcoin Reserves (SBRs). These policies aim to hold a portion of assets in Bitcoin, as a long-term store of value or hedge against economic risks like inflation. Recent SBR legislation passed in several states shows Bitcoin is increasingly being viewed as a long-term financial strategy rather than as a speculative asset.

Key Takeaways:

  • President Trump signed an executive order in March 2025, directing the U.S. Treasury Department to establish and manage a SBR to create long-term reserve holdings capitalized by Bitcoin previously forfeited in civil or criminal proceedings.
  • Senator Cynthia Lummis (R-WY) introduced the BITCOIN Act of 2025, which would codify the executive order and establish a federal SBR with a framework allowing the Treasury Department to acquire one million Bitcoin over a five-year period.
  • New Hampshire became the first state to pass an SBR law, authorizing the state treasurer to invest up to 5% of public funds in digital assets like Bitcoin.
  • Arizona passed HB 2749, establishing a Bitcoin and Digital Assets Reserve Fund to hold unclaimed digital assets for three years before they can be sold.
  • Texas joined the SBR movement with the passage of SB 21, which establishes a state SBR managed by the state comptroller as a special fund outside the state treasury.
  • Similar bills are pending in other state legislatures, including Massachusetts, Michigan, North Carolina, and Ohio.
  • The adoption of SBRs at the state level mirrors what institutional and individual investors are doing with Bitcoin stockpiles or investments in similar ETF products.

Statistics:

  • The executive order directed the U.S. Treasury Department to transfer $100 million in digital assets, including Bitcoin, to the new Office of Digital Assets and Currency by the end of 2025. (1)
  • Senator Cynthia Lummis's BITCOIN Act of 2025 proposes a five-year plan to acquire one million Bitcoin for the federal SBR. (1)
  • New Hampshire's SBR law authorizes the state treasurer to invest up to 5% of public funds in digital assets like Bitcoin, with a current market capitalization of over $500 billion. (2)
  • Texas's SB 21 requires the state comptroller to invest in digital assets that have an average market capitalization of at least $500 billion over the most recent two-year period.

Sources:

  • (1) The New York Times, "President Trump Signs Executive Order on Digital Assets"
  • (2) New Hampshire State Legislature, "HB 302: An Act Relating to State Treasury Investments in Digital Assets"
  • (3) Arizona State Legislature, "HB 2749: An Act Relating to the Creation of a Bitcoin and Digital Assets Reserve Fund"
  • (4) Texas State Legislature, "SB 21: An Act Relating to the Creation of a Texas Strategic Bitcoin Reserve"