U.S. States Push for Crypto Reserves Amid Federal Uncertainty

Several U.S. states are racing to invest public funds in cryptocurrencies before the federal government establishes a strategic digital assets reserve. However, efforts in Pennsylvania, Wyoming, Montana, South Dakota, and North Dakota have failed, while Utah is close to passing a bill allowing crypto investment for up to 5% of certain public funds. Texas has also advanced a crypto reserve bill to its Senate.

The push gained momentum after President Donald Trump and Congress showed interest in a federal Bitcoin reserve, with strong advocacy from MicroStrategy’s Michael Saylor and Senator Cynthia Lummis. However, Bitcoin’s price drop from $106,000 on inauguration day to around $83,000, along with a record-breaking hack at Bybit, has dampened enthusiasm.

Despite setbacks, Utah’s bill has cleared the state house and a senate committee, though its final passage remains uncertain. Texas, a major Bitcoin mining hub, is also making progress. Meanwhile, Indiana and Arizona are exploring blockchain for government use and crypto fund management.

North Dakota’s failed reserve effort was offset by a state house resolution encouraging crypto investments in certain funds. Experts predict that while direct state-level reserves may face hurdles, digital assets will likely be incorporated into pension and investment portfolios first.

According to Johnny Garcia of VeChain Foundation, states now have time to reassess their strategies. Dennis Porter of the Satoshi Action Fund remains optimistic, emphasizing that legislative failures are part of the process and that the push for state crypto reserves will continue.

As states act as "laboratories of democracy," the landscape of public crypto investments is evolving, with more initiatives expected in the coming years.