In March 2025, several U.S. states—including Kentucky, North Carolina, Arizona, and Oklahoma—took significant steps to integrate Bitcoin and cryptocurrencies into their financial systems through new legislation aimed at boosting state reserves and supporting crypto mining.
The push highlights a growing trend across the country, where lawmakers are not just seeing cryptocurrencies as speculative investments but as key strategic assets for long-term financial security. These efforts come as part of a broader move to build more robust state-level crypto infrastructure and increase digital asset holdings.
In Kentucky, the ”Blockchain Digital Asset Act” (HB701) was signed into law on March 24. This groundbreaking legislation grants residents the right to hold Bitcoin and provides incentives for crypto mining companies. The bill passed the state Senate unanimously, with a 37-0 vote. Kentucky, which already benefits from abundant coal and hydropower resources, is positioning itself as a major hub for Bitcoin mining and now controls 11% of the U.S. Bitcoin hashrate.
North Carolina is also making waves with bold legislative action. Lawmakers introduced three key bills to allocate public funds into digital assets. Bills H506 and S709 allow up to 5% of state funds to be invested in digital assets, while H92 increases that allocation to 10% for strategic reserves. These measures are aimed at protecting state funds from inflation while creating long-term value through Bitcoin and other digital assets. The bills are expected to be voted on in the coming weeks.
Arizona is pursuing similar initiatives, with two significant bills—SB1373 and SB1025—recently advancing through the House Rules Committee. SB1373 would allow the state treasurer to build a digital asset reserve using funds from seized criminal assets. The treasurer would also be able to invest up to 10% of the reserve and lend digital assets to generate returns, with safeguards to manage risk. Meanwhile, SB1025 would enable the state to invest up to 10% of its treasury and pension funds in Bitcoin. Arizona also plans to store its Bitcoin holdings in a potential federal Bitcoin reserve fund for added security.
Oklahoma is also jumping on the bandwagon, with the state’s House recently passing HB1203, the ”Strategic Bitcoin Reserve Bill.” This bill authorizes the investment of public funds in Bitcoin, stablecoins, and other high-market-cap digital assets.
More than 20 states are now considering similar proposals, with 23 states having introduced Bitcoin reserve bills. Matthew Sigel, Head of Digital Assets Research at VanEck, estimates that these efforts could lead to up to $23 billion in Bitcoin purchases—equivalent to approximately 247,000 BTC. This figure does not account for potential investments from pension funds, which could further drive up the total.
This momentum follows strong support from the Trump administration, which, on March 7, approved the creation of a Federal Strategic Bitcoin Reserve. This federal initiative has paved the way for states to align their policies with national efforts to adopt and secure Bitcoin.
As more states move forward with these legislative changes, the U.S. is edging closer to fully incorporating cryptocurrency into its public finance systems. From mining and reserves to direct investments, state-level actions are laying the groundwork for a future where digital assets play an integral role in financial management across the country.
Featured image from: beincrypto.com