The Newest Investors in Bitcoin: The States

By Don Friedman | CEO, Digital Assets Council for Financial Professionals
May 8, 2025

You know President Trump has called for a federal Strategic Bitcoin Reserve. But did you know 28 states are also considering this? At this writing, New Hampshire and Arizona have already passed such bills.

The state bills vary in approach. New Hampshire’s Treasurer is authorized to place up to 5% of the state’s funds into digital assets, and only those with market caps above $500 billion qualify (only bitcoin meets that definition). By contrast, Arizona is merely establishing a Bitcoin and Digital Assets Reserve Fund to hold unclaimed digital assets and staking rewards that have been abandoned after three years of inactivity. While the president’s goal is for bitcoin to help with macroeconomic policy and national security, the states are more focused on attracting the crypto industry, since it offers jobs that are considered green and high-paying.

You can learn the status of each state’s legislation at www.bitcoinlaws.io/reserve-race. Bitcoin’s role is increasing at both the federal and state levels – suggesting it ought to have an increased role in your client portfolios as well.