States, including Florida, Reject Booming Trend of Bitcoin Reserve Legislation

In a nutshell

States, including Florida, Reject Booming Trend of Bitcoin Reserve Legislation

Florida's Bitcoin reserve plan has crumbled like a sandcastle at the beach.

The proposed bills, HB 487 and SB 550, suggested setting aside up to 10% of some public funds in Bitcoin, but they were pulled before the legislative session ended on May 3 - without a floor vote. Instead, they were left in limbo, indefinitely postponed and withdrawn from consideration.

With Florida's Bitcoin bet gone sour, it joins a league of states that have recently shelved or rejected Bitcoin reserve bills, despite growing national interest in the policy since it was mentioned by President Trump.

Arizona, Oklahoma, South Dakota, Montana, North Dakota, Pennsylvania, and Wyoming have also waved goodbye to cryptocurrency treasury legislation this year, with many of them nixing bills that had already cleared early committees.

Governor Katie Hobbs of Arizona vetoed SB 1025 last week, considering it an unnecessary risk for pension systems. The bill's co-sponsor, Senator Wendy Rogers, criticized the decision and promised to reintroduce the bill during the next session, remarking, "Arizona needs Bitcoin."

Arizona still has the chance to sign another bill, SB 1373, into law. Unlike SB 1025, SB 1373 focuses on custody rather than investment, and it remains on Governor Hobbs' desk.

Oklahoma's Bitcoin reserve bill passed a committee but was struck down in a nail-biter 6-5 vote by the Senate Revenue and Taxation Committee. Even Utah, once a frontrunner, watered down its own blockchain bill to demolish a crucial provision that would have allowed the state treasurer to invest in digital assets.

It's night and day compared to just a few weeks ago when over 45 Bitcoin reserve bills were floated in more than two dozen states. Now, only 36 remain active in 19 states, according to data compiled by the Bitcoin reserve tracker, BitcoinLaws.

Texas and New Hampshire stand strong as the most viable contenders, with both states' legislatures marching forward with their Bitcoin reserve proposals. The countdown is on as many of the remaining proposals compete against the deadline, while others, like the one from Arizona's Senator Wendy Rogers, gear up for another round.

Reviewed by Sebastian Sinclair

Fast Forward

After a flurry of Bitcoin reserve bills in early 2025, several states have halted or rejected their plans, while others, like Texas and New Hampshire, remain hopeful. Florida's attempt to allocate public funds towards Bitcoin failed as both HB 487 and SB 550 were quietly pulled, ending Florida's crypto adventure without a vote.

Dozens of states, including Arizona, Oklahoma, South Dakota, Montana, North Dakota, Pennsylvania, and Wyoming, have all but abandoned their Bitcoin treasury proposals. In some cases, like Arizona, legislation failed to pass both chambers before being vetoed by the state's governor.

Governor Katie Hobbs blocked Arizona's SB 1025 last week, viewing it an inappropriate risk for pension systems. The bill's co-sponsor, Senator Wendy Rogers, decried the decision and vowed to bring the bill back during the next session, declaring, "Arizona needs Bitcoin."

Arizona still harbors hope with another bill, SB 1373, lingering on Governor Hobbs' desk. Unlike SB 1025, SB 1373 focuses on custody rather than investment, signaling the potential for a measured approach to crisis-tested Bitcoin.

Oklahoma's Bitcoin reserve bill initially passed a committee but capsized in a split 6-5 vote by the Senate Revenue and Taxation Committee. The bill was scuttled by those who questioned the volatility of Bitcoin and considered it too risky for long-term investment.

The end result? Only Texas and New Hampshire remain the top contenders in the U.S., fiercely pressing ahead with their Bitcoin reservoir dreams. The fates of their respective bills will soon be revealed as many legislatures reach their deadlines, setting the stage for a triumphant victory or a crushing defeat.

Edited by Sebastian Sinclair

Bitcoin's stumble in Florida mirrors the fate of similar proposals in Arizona, Oklahoma, South Dakota, Montana, North Dakota, Pennsylvania, and Wyoming this year.
Governor Katie Hobbs of Arizona vetoed SB 1025 due to concerns over its potential risk to pension systems, while Senator Wendy Rogers promises to reintroduced the bill in the next session, underscoring the state's continued interest in cryptocurrency.
Despite the setbacks, Arizona's SB 1373, focusing on custody rather than investment, has not been entirely abandoned and remains on Governor Hobbs' desk, offering a glimmer of hope for Bitcoin's adoption in the state.
Oklahoma's Bitcoin reserve bill was rejected in a close vote, as skepticism over Bitcoin's volatility and long-term investment potential surfaced among committee members.
In the race for a Bitcoin reserve, Texas and New Hampshire are the frontrunners, grappling with the implications and potential benefits of incorporating digital assets in their states' finance and business sectors, amid ongoing political deliberations.
As the Bitcoin reserve proposals against a looming deadline compete for success, advocacy groups such as the Bitcoin Lobby push for reconsideration of the rejected bills, emphasizing the importance of forward-thinking financial policies in an increasingly digital world.