The momentum for Bitcoin as a strategic asset is building across the United States. Nearly two dozen states are actively exploring legislation that would allow them to hold Bitcoin in their reserves. If these proposals gain approval, it could mark a significant shift in how public funds integrate cryptocurrency into their investment portfolios.

Investment management firm VanEck estimates that if these bills become law, US states could collectively acquire around 247,000 BTC, valued at approximately $23.7 billion at today’s market rates. This growing interest in Bitcoin stems from multiple financial incentives, including its role as an inflation hedge, its diversification benefits, and its historical appreciation.

Bitcoin has often been compared to "digital gold" due to its limited supply and potential to retain value in times of economic uncertainty. Many state-managed funds see it as a safeguard against inflation and a way to diversify assets away from traditional financial markets. With projections from Galaxy Digital suggesting Bitcoin could reach $185,000 by the end of 2025, some lawmakers view these investments as a high-reward strategy.

States like Alabama, Arizona, Florida, and Kansas have already made legislative moves toward Bitcoin adoption. Alabama’s State Auditor Andrew Sorell has openly advocated for a Bitcoin reserve, asserting that cryptocurrency is "here to stay." Arizona’s Senate Finance Committee recently approved a bill that could allow up to 10% of public funds to be invested in Bitcoin and other digital assets. Meanwhile, Florida’s Chief Financial Officer, Jimmy Patronis, has requested a study on the feasibility of directing state retirement funds into cryptocurrency.

Other states are following suit. Kansas has introduced a bill that could see 10% of its $27.4 billion retirement system invested in Bitcoin ETFs. Illinois, Iowa, and Massachusetts have all put forth legislation aimed at recognizing Bitcoin as a strategic financial asset. Additionally, Michigan’s public retirement system has already disclosed holdings in Bitcoin ETFs.

Missouri, Montana, and New Hampshire are also advancing Bitcoin-related legislation. Missouri’s House Bill 1217 aims to create a Bitcoin reserve fund, while Montana legislators have proposed a $50 million allocation to digital assets. In New Jersey, Jersey City Mayor Steven Fulop previously hinted at pension fund exposure to Bitcoin ETFs, though details remain scarce.

In the southern states, Texas is leading the charge with Senate Bill 778, which seeks to establish a dedicated Bitcoin reserve separate from the state’s general fund. Similarly, North Carolina has introduced the NC Digital Assets Investments Act, allowing Bitcoin investments through exchange-traded products. South Dakota and Utah are also considering legislation that would permit public funds to invest in cryptocurrency.

Wyoming, which has historically been a leader in pro-Bitcoin regulation, is proposing to allocate up to 3% of state funds into Bitcoin. The state’s treasury could invest directly in Bitcoin through secure custody solutions or exchange-traded products, marking a significant step in public finance.

Wisconsin has already taken action, becoming the first state to invest in Bitcoin ETFs. As of Q4 2024, the State of Wisconsin Investment Board held 3.1 million shares of BlackRock’s iShares Bitcoin Trust, valued at approximately $588 million. This move indicates a growing institutional acceptance of Bitcoin as a legitimate asset class.

While some lawmakers remain skeptical, citing volatility and regulatory concerns, the overarching trend suggests increasing governmental confidence in Bitcoin’s role within public finance. If these legislative efforts continue to gain traction, Bitcoin could soon become a mainstream asset in public pension funds and state reserves across the country.