Five states' cryptocurrency initiatives have hit roadblocks as Texas moves forward and Utah approaches a final vote, leading to mixed results in the states' efforts to create digital asset reserves.

Updated Feb 27, 2025 20:33 UTC Published Feb 27, 2025 18:29 UTC

Key points:

• Legislative initiatives in Texas and a looming finale in Utah are raising tension among state-level cryptocurrency watchers, while the outcome of any bill aimed at investing public funds in cryptocurrency remains uncertain.
• Attempts by a number of states have already failed, and for others, opportunities are beginning to close.

A surge in interest from US states to invest public money in cryptocurrencies before the federal government creates a strategic digital asset reserve has led to mixed results after five such initiatives failed. Meanwhile, Utah is closing in on the finish line, with Texas reportedly introducing a bill in the state Senate.

Pennsylvania, Wyoming, Montana, South Dakota, and North Dakota have all failed in their legislative efforts to invest public funds in cryptocurrency. Meanwhile, other states — most notably Utah — have made significant progress in passing bills that could tie their financial well-being to digital asset markets, and the landscape is changing by the day.

The U.S. Congress and President Donald Trump have drawn attention to the idea of a federal strategic digital asset reserve, with a public campaign for the idea kicking off at the Bitcoin 2024 event in Nashville, Tennessee, before Trump won the election and gave Republicans a majority in Congress. Trump has been a vocal supporter of the idea, which has also been pushed more aggressively by MicroStrategy’s Michael Saylor and Sen. Cynthia Lummis, a Wyoming Republican who chairs the Senate Banking Committee’s crypto subcommittee.

Many states have sought to preempt federal action, but in the weeks since that trend began, the market value of the asset at the center of much of the effort, Bitcoin (BTC), has fallen significantly since the post-election euphoria that seemed to fuel interest.

Read more: US Bitcoin Reserve Could Be Created, But States Are Winning the Race

The price drop from around $106,000 on the day of Trump’s inauguration to $83,000 coincided with another major hack of the Bybit exchange, which reportedly resulted in the loss of more cryptocurrency than ever before in a single transaction. These incidents could further undermine support from enthusiasts in state governments.

“That sense of urgency seems to have diminished,” said Johnny Garcia, managing director of the VeChain Foundation, which monitors state actions. “I think states have the opportunity to take a little bit of a breather to assess the situation and consider next steps.”

Montana and North Dakota suffered obvious setbacks when their legislatures considered state-level cryptocurrency reserve ideas. Both legislatures voted down the bills. In the other three states where the initiatives failed, the rejections occurred at the committee level.

Meanwhile, a Utah bill that would allow cryptocurrency investments of up to 5% of certain state accounts has cleared the House and Senate committees and is headed to the full Senate. However, getting that vote is never a guarantee in the limited time most states have for their legislative process.

“While Utah appears most likely to complete its bill first, nothing is off the table,” said Dennis Porter, CEO of the Satoshi Action Fund, which is calling on states to create bitcoin reserves.

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