Which States in the US Have Rejected the Bitcoin Reserve Bill?

Original Article Title: These States Have Rejected Bitcoin Reserve Bills

Original Article Author: Decrypt

Original Article Translation: Felix, PANews

After several states rejected bills to invest public funds in the leading cryptocurrency, some state-level Bitcoin reserve proposals in the United States have faced setbacks. Among the 50 states in the U.S., over half have introduced or are considering legislation related to Bitcoin reserves or digital asset investments, but the outcomes of many of these bills remain uncertain. Some bills have successfully passed, establishing a framework for state-level crypto reserves, but many others have failed to materialize. 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 sought to allocate up to 10% of specific public funds to this top-tier crypto asset, with the HB 487 bill proposing to add all tax payments made in Bitcoin to a general reserve fund it was originally supposed to create. Neither of these bills was brought before the Florida House or Senate for consideration as they were withdrawn at the end of the legislative session on May 3.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 Tax Committee voted 6-5 to reject HB 1203, the "Strategic Bitcoin Reserve Act," marking the state's failed attempt to establish a Bitcoin reserve. The bill would have allowed the state to allocate up to 5% from four separate state funds to invest in Bitcoin or any other digital asset with an average market cap of over $500 billion in the past year. Currently, only Bitcoin meets this criteria. Despite the rejection of the bill, a representative who was expected to vote against it changed her stance on the afternoon of the vote day, instead supporting the bill, stating that she was swayed by Bitcoin-supporting constituents.

Utah

While the state's bill was not rejected or voted down, Utah's plan to establish a strategic Bitcoin reserve fell through in March when a provision that would have allowed the state to create a reserve was removed from a blockchain bill. The "Blockchain and Digital Innovation Amendment" (HB 2030) passed in the Utah Senate by a vote of 19-7 after the reserve provision was stripped, establishing rights for individuals to operate blockchain nodes, participate in staking, and more. The bill was officially signed by the state's governor on March 25.

New Mexico

New Mexico's SB 275 bill, which aimed to allocate 5% of the state's financial resources to invest in Bitcoin, was tabled after being introduced to the Senate Tax, Business, and Transportation Committee in early February. According to SourceNM, the bill's sponsor, Republican Anthony Santen, stated that he intends to reintroduce the bill in the future.

Montana

Montana's Bitcoin Reserve bill, known as House Bill 429, faced setbacks after being introduced in late January. The bill proposed allocating up to $50 million of public funds for investment in Bitcoin, stablecoins, and precious metals. Despite support from Representative Curtis Schomer, who believed the bill would help diversify the state's assets and potentially yield higher returns, the proposal was rejected in the House on February 21 with a vote of 59-41.

South Dakota

South Dakota's HB 1202 proposal, suggesting investing up to 10% of the state's public funds in Bitcoin, was rejected on February 24 in the House Commerce and Energy Committee with a vote of 9 against and 3 in favor. While the bill's sponsor, Representative Logan Manhart, believed Bitcoin could retain its value in an inflationary environment, South Dakota investment officer Matt Clark warned about the asset's volatility.

North Dakota

North Dakota's proposal HB 1184 aimed to explore the feasibility of establishing a Bitcoin reserve but failed to pass in the House with 57 votes against and 32 in favor. However, this does not mean that the "Peace Garden State" (North Dakota) has entirely abandoned cryptocurrency-related initiatives. The Legiscan website indicates that the North Dakota Legislative Assembly is still considering a resolution introduced by Republicans that encourages the state Treasurer and State Investment Board to allocate some state funds into digital assets and precious metals. According to state records, this resolution has passed the second reading in the North Dakota House of Representatives and will be further reviewed by the Senate Industry, Business, and Labor Committee.

Pennsylvania

Pennsylvania's HB 2664 bill, which proposed allocating up to 10% of the state's funds to invest in Bitcoin, has indeed been rejected. This Republican-led bill, co-sponsored by Representatives Michael Cabell and Aaron Kaufer, was first introduced in November last year. The bill would have authorized the Pennsylvania State Treasurer to invest in cryptocurrency, allowing public funds to be placed in these digital assets through secure custody solutions or invested in exchange-traded products tracking the prices of digital assets like Bitcoin.

Wyoming

A bill proposed by Wyoming in mid-January was rejected by the state committee on February 6, with records from the state legislature showing that only one out of eight members supported the initiative. The bill called for the allocation of state government funds and permanent funds to invest in Bitcoin. According to the bill, the funds from the general fund, the permanent Wyoming mineral trust fund, and the permanent land fund could each be allocated to the largest market cap digital asset.

Arizona

The "Arizona Strategic Bitcoin Reserve Bill" (SB 1025) in Arizona made its way to Governor Katie Hobbs's desk but ultimately did not succeed, as Katie Hobbs vetoed the bill in early May.

If passed, the bill would have allowed the Arizona State Treasurer to allocate up to 10% of the state's government funds to Bitcoin and other cryptocurrencies. In a letter to Arizona Senate President Warren Petersen, Katie Hobbs wrote, "Arizona’s retirement funds are not in a place to take risk on an unvetted investment like cryptocurrency." It is worth noting that the Arizona Senate approved the Bitcoin Reserve Bill SB 1373 and sent it to Governor Katie Hobbs for the final decision.

Despite the veto of SB 1025, a separate bill was passed and signed into law a few days later. The official Arizona legislative record shows that HB 2749 has been formally signed into law by the governor, marking the establishment of the state's first crypto reserve. This reserve is not for investment but is to receive unclaimed virtual assets, airdrops, and staking rewards and hold them in their native form.

Outlook

While New Hampshire was the first state to pass a Strategic Bitcoin Reserve Bill, authorizing the state treasurer to purchase Bitcoin or digital assets with a market cap over $500 billion and setting a cap of 5% of the total reserve funds, other bills are still under review by legislators.

The North Carolina House of Representatives passed the Digital Assets Investment Act (HB 92), authorizing the state treasury to invest in eligible digital assets. The early version of the bill had proposed a limit of 10% of the total fund for digital asset investments, but the version passed by the House ultimately adjusted the cap to 5%. The bill is now awaiting Senate review.

The Texas House Committee has passed the SB 21 bill, aiming to establish a state-level Bitcoin reserve. The bill was passed by a 9-4 vote in the committee after overwhelming support with a 25-5 vote in the state Senate. If it receives full House approval by June 2, it will be sent to Governor Greg Abbott for signing.

Other states, such as Alabama and Minnesota, have also introduced Bitcoin reserve bills, but they are still far behind in the legislative process. According to BitcoinLaws data, there are currently about 36 total state Bitcoin reserve-related bills still advancing.

Original Article Link