TLDR
- Utah, Arizona, and Illinois have introduced bills to establish Bitcoin reserves, with Utah’s bill allowing up to 5% investment in digital assets and potentially becoming the first state to pass such legislation
- Arizona’s Senate Finance Committee approved a bill allowing 10% investment in digital assets, including state treasury and retirement funds
- Illinois’ proposed bill requires the state treasurer to hold Bitcoin for at least 5 years, while Indiana’s bill focuses on allowing investment in Bitcoin ETFs
- The Czech Republic’s central bank governor plans to invest up to 5% of its €140 billion reserves in Bitcoin
- Controversy has emerged over Donald Trump’s executive order using the term “digital assets” instead of specifically mentioning Bitcoin, leading to disputes between Bitcoin maximalists and other cryptocurrency supporters
Utah, Arizona, and Illinois have joined a growing number of U.S. states taking steps to establish Bitcoin reserves, marking a shift in how government entities view digital assets. These legislative moves come as the Czech Republic’s central bank also announces plans to invest in cryptocurrencies.
In Utah, State Representative Jordan Teuscher introduced the Blockchain and Digital Innovation Amendments bill on January 21, 2025. The House Economic Development and Workforce Services Committee has voted to approve the legislation, which now moves to the full House for consideration.
The Utah bill initially proposed allowing the State Treasurer to invest up to 10% in digital assets, including non-fungible tokens (NFTs) and stablecoins. However, lawmakers revised the bill to reduce the maximum exposure to 5%. The legislation includes specific requirements for digital asset investments, such as regulatory approval, market capitalization requirements, and liquidity standards.
Representative Teuscher expressed optimism about Utah’s position in the race to adopt digital assets. “While Utah is the 11th state to introduce similar legislation, we will be the first to pass it. Utah continues to lead the nation in blockchain and digital innovation,” he said. If approved, the law could take effect as early as May 2025.
Arizona has made its own moves in the digital asset space, with the State Senate’s Finance Committee voting 5-2 to approve the Strategic Reserve Bitcoin Act. The legislation permits the state to invest up to 10% of public funds in digital assets, including both state treasury and retirement funds.
The Arizona bill includes a provision for storing virtual currency holdings in a secure segregated account within a federal strategic bitcoin reserve, should the U.S. Secretary of the Treasury establish such a facility.
Illinois has entered the conversation with legislation introduced by State Representative John Cabello. The proposed bill would establish a Bitcoin fund managed by the state treasurer. Unlike other states’ proposals, Illinois’ bill requires a minimum five-year holding period for any Bitcoin purchased or received as gifts from Illinois residents and government entities.
Indiana has taken a different approach with its House bill, focusing on enabling state-managed funds, including the public employees’ retirement fund, to invest in Bitcoin ETFs. This legislation covers both spot and futures ETF investments, offering a more traditional investment vehicle for digital asset exposure.
Beyond U.S. borders, the Czech Republic’s central bank has announced plans to diversify its holdings into digital assets. Governor Aleš Michl told the Financial Times he aims to invest approximately 5% of the bank’s €140 billion reserves in Bitcoin.
Michl, who previously worked as an investment banker, acknowledged the unconventional nature of his proposal but emphasized his focus on profitability. The move represents one of the first major central bank initiatives to include Bitcoin in national reserves.
The movement toward digital asset reserves has sparked debate within the cryptocurrency community. A recent executive order signed by Donald Trump has become a point of contention, as it uses the broader term “digital assets” rather than specifically mentioning Bitcoin.
This terminology has led to disagreements between Bitcoin maximalists and other cryptocurrency supporters. The dispute intensified when Ripple CEO Brad Garlinghouse, known for his company’s legal battles with the SEC, reportedly worked to include XRP in consideration for government reserves.
Bitcoin supporters have criticized these efforts, arguing that including other digital assets in government reserves could undermine the intended benefits of Bitcoin adoption.
In Utah, if the current bill passes both houses, Governor Spencer Cox’s signature would make it the first state to establish a digital asset reserve program. The bill’s implementation would create a template for other states considering similar legislation.
The Arizona bill’s next hurdle is approval from the full Senate, followed by House consideration and the governor’s signature. If successful, Arizona would join Utah in pioneering state-level digital asset reserves.
Illinois’ proposal stands out for its mandatory holding period, reflecting a long-term approach to digital asset investment. The five-year minimum holding requirement suggests confidence in Bitcoin’s long-term value proposition.
