Bitcoin Reserve Strategies in the United States Hit Roadblock as a number of payments are rejected

After numerous claims rejected costs to spend public money in the leading bitcoin, a flurry of state-level Bitcoin supply proposals across the U.S. has hit a hindrance.

Over 20 of the 50 U.S. states have introduced or are considering legislation relating to Bitcoin assets or investments in digital property, but the death of many of these bills is still undetermined.

But over the past few weeks, some states—including Montana, South Dakota, North Dakota, Pennsylvania, and Wyoming—have dealt losses to the growing Bitcoins supply program.

Montana’s Bitcoin supply plan, House Bill 429, faltered following its launch in late January. The bill sought to allocate up to$ 50 million in public funds for Bitcoin, stablecoins, and precious metals.

The bill was defeated in a 59-41 vote in the House of Representatives on February 21 despite the claims of Representative Curtis Schomer, who backed it as a way to expand state property and possibly safe higher profits.

Also, South Dakota’s HB 1202, which proposed allocating up to 10 % of the country’s public money into Bitcoin, was rejected by the House Commerce and Energy Committee in a 9-3 voting on February 24.

While Representative Logan Manhart, the president’s partner, argued that Bitcoin could maintain value in expansionary conditions, Matt Clark, South Dakota’s State Investment Officer, cautioned against the stock’s fluctuation.

Pennsylvania, North Dakota, and Wyoming have also seen their Bitcoin supply ideas either rejected or stalled in legislative commissions.

North Dakota’s plan, HB 1184, which sought to explore the viability of a Crypto supply, failed to pass the House with a vote of 57-32.

Pennsylvania’s HB 2664 proposed investing up to 10 % of the country’s resources in Cryptocurrency but was essentially killed, while Wyoming’s costs, introduced in mid-January, was rejected by the state committee on February 6.

State and national Bitcoin deposits

The support for a federal Bitcoin hoard from U.S. President Donald Trump during his election campaign last year is what has fueled the state-level momentum behind Bitcoin resources.

Senator Cynthia Lummis of Wyoming, head of the Senate committee on digital assets, introduced a bill in July 2024 that demanded that the United States federal buy 1 million Bitcoin over five years for a national strategic supply, but her country’s request for a country’s individual Bitcoin reserve has struggled to get traction.

Moving forward

Although there’s been pushback from some states, Bitcoin reserve proposals are advancing in other regions.

Utah’s bill passing the revenue and taxation subcommittee in a 4-2-1 vote on February 20 is the most significant step forward.

With Bitcoin being the only asset meeting the$ 500 billion market cap requirement, making it the primary candidate for the state’s reserve asset, HB 230 is now just one step away from reality, allowing the state treasurer to designate it as the reserve asset.

Texas, known for its crypto-friendly stance, is pushing forward with two distinct Bitcoin-related proposals.

A second bill addresses Bitcoin donations and crypto payment conversions, while a first one would permit the state to grant Bitcoin up to 1 % of its overall revenue fund.

The Oklahoma House Government Oversight Committee approved HB 1203, the Strategic Bitcoin Reserve Act, on February 25 with a 12-2 vote.

Arizona’s Senate Finance Committee advanced SB 1025, which proposes up to 10 % of public funds, including pensions, to be invested in cryptos like Bitcoin. A vote in the House is currently pending on the bill.

The movement for state Bitcoin reserves is still alive and well as lawmakers continue to weigh the potential of digital assets in public finance as 18 bills are currently pending in various states.