Arizona, Utah, and Oklahoma Take the Lead in Strategic Bitcoin Reserves Legislation

Arizona, Utah, and most recently Oklahoma are making significant progress on bills that propose the creation of Strategic Bitcoin Reserves (SBRs), paving the way for other states to follow.

On Tuesday, Oklahoma’s SBR bill passed the committee stage and is now advancing to a floor vote. Last month, Arizona’s Senate Bill 1025 also cleared committee approval and is now moving toward a full Senate vote. One day later, Utah’s proposal advanced through the House Economic Development Committee with an 8-1 vote and is now awaiting a full House vote.

These recent developments align with a growing trend among U.S. states to explore cryptocurrency as part of their financial strategies. Experts say the adoption of such reserves could diversify state treasuries and set a precedent for other states looking to tap into the benefits of digital assets.

The Benefits

“Holding BTC as a reserve asset can boost state treasuries and provide more funds for state-led goals,” said Steven Lubka, Head of Swan Private. “It would likely attract a lot of attention and interest from the industry, and states adopting SBRs would increase the probability of a federal bill.”

Lee Bratcher, President of the Texas Blockchain Council, who helped draft Texas’ SBR bill, echoed this sentiment, noting that the initiative signals to technology companies and investors that fostering innovation is a priority for states.

“The initiative to pass an SBR sends a strong message to technology companies and investors that fostering innovation is important to states, making the tech sectors flock to these states,” he said.

Bratcher added that “supporting Bitcoin and blockchain initiatives like an SBR bill generates employment opportunities in these emerging tech sectors.”

Oklahoma’s Bill

On Feb. 11, Oklahoma’s Strategic Bitcoin Reserve (SBR) bill, known as House Bill 1203, passed the committee stage with a 6-2 vote and is now advancing to a floor vote.

HB1203, introduced by Representative Cody Maynard on Jan. 15, would allow Oklahoma’s savings accounts and pension funds to invest in Bitcoin alongside traditional assets. Maynard described Bitcoin as “freedom from bureaucrats printing away our purchasing power.”

Dennis Porter, CEO of the Satoshi Action Fund (SAF)—a nonprofit that assists legislators in drafting SBR bills—called the news “breaking.” A day earlier, he emphasized the importance of these bills, stating that their passage is “critical.”

“As Strategic Bitcoin and BTC Rights bills become law, it increases the odds that future bills will also pass,” Porter said in a post on X. “So far, we’ve played a direct role in passing four pro-Bitcoin bills into law.”

Utah’s Bill

On Jan. 28, a Utah House committee voted to advance a bill that would allow the state to invest a portion of public funds in Bitcoin, other cryptocurrencies with a market cap over $500 billion, and approved stablecoins.

The bill will now proceed to the full House and Senate for further approval before heading to Governor Spencer Cox, who will have the option to either sign or veto it. If approved, the law is set to take effect on May 7.

There’s a “very good shot” that Utah will be the first state to pass its SBR bill, as they only have 45 days to make a decision, Porter said in a recent interview with U.S. Senator Cynthia Lummis (R-WY).

Porter emphasized the urgency.

“It’s either sink or swim in 45 days. No one else has a faster timeline, and no one else has more political momentum and willpower to get it done,” he said in the interview, which he shared on X on Feb. 2.

Arizona’s Bill

One day before Utah’s bill cleared committee, the Arizona State Senate Finance Committee approved SB1025 on Jan. 27. The SBR, co-sponsored by Senator Wendy Rogers and Representative Jeff Weninger, passed with a 5-2 vote and will now proceed to the full Senate for further consideration.

The bill would permit the State Treasurer, Arizona State Retirement System, and Public Safety Personnel Retirement System to invest up to 10% of public funds in virtual currencies.

"It is fantastic for market sentiment to Arizona and other states that want to invest in Bitcoin,” said Eli Cohen, General Counsel at Centrifuge. “It really shows the maturity of the market and the mainstreaming of Bitcoin.”

He added that these steps may help move the crypto markets away from their tight correlation with traditional finance markets and toward a “counter-cyclical hedge,” allowing Bitcoin to act as a true strategic reserve.

“This is what we want to see,” said Cohen. “New whales to drive the market higher—even more so if other states and the Federal government start the purchase of Bitcoin.”

He noted that it will also be interesting to see how Arizona and other states and/or the U.S. Treasury implement these purchases. “There are key operational issues, like what wallet, custodian, and exchange the authorities decide to use and work with,” Cohen said. “It will be a serious vote of confidence for a state treasury to choose a particular crypto service provider."

Growing Momentum

Porter celebrated the recent approval of SBR bills in a Feb. 11 post on X, emphasizing that states are leading the charge in establishing Strategic Bitcoin Reserves.

SAF has been instrumental in helping lawmakers draft key legislation. Earlier this year, the organization announced that more than a dozen SBR bills are expected to be introduced across US states.

To date, fifteen states have either introduced or passed bills aimed at creating Bitcoin reserves, including Alabama, Arizona, Florida, Kentucky, Massachusetts, Montana, New Hampshire, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, and Wyoming.