Crypto bills stack up across the US, from Bitcoin reserves to task forces

State lawmakers across the US are introducing crypto-focused legislation, with the bills as diverse as the states themselves. 

Since the beginning of February, nine US states have introduced some form of legislation pertaining to cryptocurrency. The bills range from Bitcoin reserves to task forces designed to better inform state policies on digital assets. 

The growing visibility of the blockchain industry follows the 2024 federal and state elections, in which the crypto industry spent nearly $250 billion supporting pro-crypto candidates in both parties.

This drive to regulate the industry is reflected both at the federal level and among the individual states, four of which have introduced crypto bills just this week. 

North Carolina wants to invest in crypto ETPs

Lawmakers in the Tar Heel state on Feb. 10 introduced a bill that would permit the state treasurer to invest public funds in “qualified” digital assets.

Speaker of the House Destin Hall introduced the NC Digital Assets Investments Act, which allows the state to diversify its investments with cryptocurrencies. However, the state may not invest in them directly, but rather through an exchange-traded product (ETP), like an exchange-traded fund.

According to the terms of the bill, the ETP must also have a market capitalization of $750 billion over the previous 12 months. Investment in a crypto ETP cannot exceed 10% of all funds allocated by the state for investment.

Speaking to local media, Hall said that allowing such investment “positions North Carolina as a leader in technological adoption & innovation.” He added on X that it fits in with the nationwide vision of US President Donald Trump to make the country a leader in the crypto industry.

As it stands, the bill has passed its first reading and has been referred to the Committee on Commerce and Economic Development.

Michigan makes a crypto reserve

On Feb. 13, Representatives Bryan Posthumus and Ron Robinson in the Great Lakes state introduced a bill that would amend rules around the state budget, allowing the government to create a crypto reserve.

The move made Michigan the 20th state overall to introduce such legislation, which, in Michigan, would allow the treasurer to allocate no more than 10% of available funds in the state investment and economic development funds. 

Related: Michigan pension fund maintains Bitcoin ETF investment, adds Ether ETFs

Furthermore, the bill would allow the treasurer to loan out the crypto for further returns if it “can be loaned without increasing financial risk to this state.” 

The bill stipulates that the state can hold crypto directly through a secure custody solution or, similarly to the bill in North Carolina, get exposure to crypto through ETPs. 

Posthumus said on X that a crypto reserve would keep his state competitive with other crypto-forward jurisdictions like Texas. 

On the same day that Posthumus introduced his crypto reserve bill, he also voiced his support for “MichCoin,” a hypothetical stablecoin backed by gold and silver.

Both bills are currently in committee. 

Task force to look into the “state of crypto” in New York

Senators in the Empire State have put forward a bill that aims to create a crypto task force to examine the state of crypto in New York and the “effects of the widespread use of cryptocurrencies and other forms of digital currencies.” 

The task force, if enacted, will consist of 17 members, some of whom are appointed by the governor, while others come from state organs of relevant expertise. 

The members will have presented their findings to the governor and the state legislature by Dec. 15, 2027.

The task force would focus on a number of aspects of crypto in New York, including crypto energy consumption — a number of Bitcoin (BTC) miners relocated to Upstate New York seeking cheap hydroelectric power — the environmental impact of crypto and, crucially, how their state’s laws measure up to others.

While widely recognized as the center of global finance, New York maintains a BitLicense regime, which many in the crypto industry have criticized as being unnecessarily restrictive, leading them to search elsewhere to set up operations. 

Related: NYDFS approves BitLicense for Anchorage Digital subsidiary

New York City Mayor Eric Adams has urged the state to get rid of the policy: “New York State is the only state to require a license for crypto companies. That’s a high barrier, and it just makes us less competitive. We have to continue to be competitive.”

The bill is currently in the Senate committee. 

Texas tweaks its Bitcoin reserve bill

An absence of state income tax and preferential terms for the crypto industry has made the Lone Star State a leader in the US blockchain industry. The state initially made headlines in January when state legislators introduced a bill that would create a Bitcoin-only reserve. 

The newest bill, filed on Feb. 12, would allow for other cryptocurrencies to be included in the reserve. However, it states that the cryptocurrencies must have had a market capitalization of at least $500 billion for the past 12 months.

At publishing time, only Bitcoin can make that boast. 

Riot Platforms vice president of research Pierre Rochard noted that the new bill also gets rid of a $500 million appropriation cap, allowing Texas to “appropriate as much as it wants to save BTC.”

Related: Pro-Bitcoin lawmakers pack Congress as partisan gridlock looms

Texas Senator Charles Schwertner is optimistic that the legislation will pass, saying that his bill is “one of the Senate’s top 40 priority bills.”

States scramble to lead the way in crypto innovation

As noted, there were four state crypto bills introduced this week alone — something that would have been unthinkable just a few years ago. 

States across the US are scrambling to offer favorable terms for crypto business and invest in what they see to be a growing and critical industry. 

In February alone, Florida, Utah, Ohio, Missouri and Kentucky have all introduced legislation to either create Bitcoin reserves or allocate state funds to crypto-related investment vehicles.

Still, as the map above shows, momentum may be growing, but a bill is only a bill, and there is a long road of committees and rewriting and deal-making before it can become a law, if it does at all. 

Bitcoin reserves have already been rejected in North Dakota and Wyoming, the latter of which is generally considered a Bitcoin-friendly state.

One must also consider the effect of federal stablecoin and crypto regulations, which, should they be codified into law, could give states guardrails on which to base their own policies and programs. 

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