US states start a race for bitcoin reserves

John Cabello, the deputy minority leader in the Illinois House of Representatives, has introduced a bill to create a Strategic Bitcoin Reserve (SBR).

Dennis Porter, CEO of Satoshi Action Fund, drew attention to this and several similar initiatives. The organisation he leads promotes bitcoin in the country’s political and business circles.

MASSIVE NEWS: A bill to create a ‘Strategic Bitcoin Reserve’ has been introduced in the state of Illinois by @JohnCabello. pic.twitter.com/acAGjJlke1

— Dennis Porter (@Dennis_Porter_) January 29, 2025

In December 2024, Porter outlined a mechanism by which President Donald Trump could fund the formation of a federal SBR before Congress enacts legislative changes. He noted that if the central authorities do not hurry to create the fund, they will organise a “SBR wave” at the state level.

In January, as part of fulfilling campaign promises, President Trump announced the formation of a digital-assets task force led by special adviser on AI and cryptocurrencies David Sacks. One of the group’s tasks is to assess the prospects for implementing an SBR. In a recent interview, the official confirmed that they are “studying” the issue.

They are studying Bitcoin. ? pic.twitter.com/B96BYtGxUM

— Dennis Porter (@Dennis_Porter_) January 30, 2025

The largest publicly listed miner by market capitalisation, MARA Holdings, has joined the lobbying to create bitcoin reserves at the federal level and in all 50 states.

Illinois

The proposal from John Cabello would establish a fund under the management of the state treasurer. Deposits in digital gold will be held for at least five years. During this period, any bitcoins from the reserves may not be transferred, sold or converted into other assets.

The vehicle would be able to accept voluntary donations in bitcoin.

The lawmaker proposed regular audits every two years. As a security measure, Cabello considers it necessary to use cold storage for coins.

Ohio

The majority leader in the House of Representatives, Steve Demetriou, introduced a new bill to create an SBR. Six other state legislators co-authored it.

MASSIVE BREAKING: A new bill enabling Ohio to create a ‘Strategic Bitcoin Reserve’ with 6 co-sponsors has been introduced in the state of Ohio by Majority Whip @steve4ohiohouse.

Key notes about the bill:
1. The state can allocate up to 10 percent of its general fund, budget… pic.twitter.com/djEmPNvOcT

— Dennis Porter (@Dennis_Porter_) January 24, 2025

In December, Republican Derek Merrin first proposed a similar initiative.

Among the features of Demetriou’s proposal:

• the state may allocate up to 10% of its budget stabilisation fund to invest in bitcoin;
• the vehicle uses robust custodial solutions with self-custody;
• only assets with a market capitalisation of at least $750 million may be included in the reserve;
• the bill uses the neutral term “digital asset” to reduce political friction.

“We fully support and approve of this act and will work closely with its authors and supporters to make it a reality,” Porter said.

Arizona, Utah, Texas and beyond

In Arizona, a bill to form an SBR was the first among states to clear a relevant committee. The document will soon be put to a floor vote in the Senate.

Republicans Wendy Rogers and Jeff Weninger are the co-authors of the proposal.

BIG BREAKING: I can confirm that Arizona has become the 1st state in the nation to pass out of committee a bill to create a ‘Strategic Bitcoin Reserve’.

The bill will soon move to a floor vote in the Senate. Congrats to co-sponsors @WendyRogersAZ and @JeffWeninger for their… pic.twitter.com/nUjt5HccbZ

— Dennis Porter (@Dennis_Porter_) January 27, 2025

Second in this respect was the Utah Senate — the SBR document has also already left committee.

In South Dakota, a bill on a bitcoin fund has only just begun its path through the legislature — it was filed by Representative Logan Manhart.

In Texas, the lieutenant governor declared creation of an SBR a “priority”, Porter noted. The corresponding act was submitted to the House back in December.

The Lieutenant Governor of Texas just made ‘Strategic Bitcoin Reserve’ a priority.

Two states have already passed SBR bills out of committee.

The President created a working group to study the creation of a ‘Strategic Bitcoin and digital asset Stockpile.’

Moving very fast!

— Dennis Porter (@Dennis_Porter_) January 29, 2025

“Moving very fast,” the head of Satoshi Action Fund summed up the latest news on the topic.

At the end of January, the Arizona legislature introduced a bill allowing local governmental and pension funds to invest in bitcoin. A similar initiative was put forward in Indiana.

The Bitcoin Conference counted a total of ten states in which bills on the first cryptocurrency have already been introduced.

?? STATES THAT INTRODUCED & FILED FOR #BITCOIN LEGISLATION:

? Massachusetts
? Kansas
? New Hampshire
? Wyoming
? Ohio
? Utah
? Arizona
? Texas
? Oklahoma
? South Dakota

YOU’RE NOT BULLISH ENOUGH ? pic.twitter.com/4xhOKKfdZ3

— The Bitcoin Conference (@TheBitcoinConf) January 28, 2025

Analysts at Fidelity Digital Assets believe that national-level adoption of bitcoin in 2025 would be a powerful driver for the digital asset.