Several U.S. states are introducing legislation to explore Bitcoin as a state-held reserve asset, reflecting increased interest in Bitcoin and digital assets at the government level. 

Kentucky recently became the 16th state to propose such a measure, joining a broader movement toward integrating Bitcoin into state financial management.

Kentucky’s Bitcoin Reserve Legislation

On February 6th, Kentucky State Representative Theodore Joseph Roberts introduced KY HB376, a bill that would authorize the State Investment Commission to allocate up to 10% of excess state reserves into Bitcoin and other digital assets.

Supporters argue the bill could encourage institutional investment, while critics caution that Bitcoin’s price volatility necessitates careful risk management by state governments.

Missouri’s Proposal for a Bitcoin Strategic Reserve

Missouri Representative Ben Keathley introduced House Bill 1217, which proposes creating a Bitcoin Strategic Reserve Fund as part of the state's investment strategy. 

If enacted, the bill would allow the state treasurer to invest in and hold Bitcoin using state funds, with a minimum five-year holding period for any acquired assets.

The bill also mandates that state agencies accept Bitcoin for taxes and fees, with payees covering transaction costs.

Ohio Expands Bitcoin Reserve Legislation

Ohio has been particularly active in Bitcoin-related legislation. Senate Bill 57, introduced on January 29th, proposes the creation of an Ohio Bitcoin Reserve Fund, allowing the state treasurer to invest state funds into Bitcoin, with a mandatory five-year holding period.

According to Senator Sandra O’Brien, the bill aims to position Ohio as a leader in Bitcoin and digital asset adoption. 

The proposal aligns with Donald Trump’s executive order establishing a crypto working group to assess the role of Bitcoin and digital assets in the economy.

The bill also requires Ohio government agencies to accept Bitcoin and cryptocurrency for tax payments, fees, and other transactions, converting them into Bitcoin for the reserve fund. 

It builds on HB 703, introduced in December 2024 by Ohio House Republican leader Derek Merrin, which suggested Bitcoin could serve as a hedge against fiat currency depreciation.

Utah’s Progress Toward Bitcoin Reserves

Utah is also among the states advancing Bitcoin reserve legislation. House Bill 230, introduced by Representative Jordan Teuscher on January 21st, passed the state House on February 6th and is now awaiting Senate approval.

If enacted, the bill would authorize the state treasurer to invest up to 5% of public funds into Bitcoin, stablecoins, and other high-cap digital assets. 

Utah is currently the closest state to passing a Bitcoin reserve law, according to Bitcoin Reserve Monitor. 

Other states considering similar proposals include Arizona, New Hampshire, North Dakota, Wyoming, and South Dakota.

State-Level Bitcoin Reserves: A Growing Focus

The increasing number of Bitcoin reserve bills across multiple states reflects growing interest in digital assets as part of public finance. 

With Kentucky, Missouri, Utah, and Ohio introducing legislation, discussions on state adoption of Bitcoin are becoming more widespread.

Some lawmakers view these bills as a step toward financial innovation, while others caution that Bitcoin’s price fluctuations could present fiscal risks to state budgets.

As more states explore similar measures, the debate over state-level Bitcoin reserves is likely to continue. Whether this trend leads to a broader federal policy discussion remains to be seen.

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