Crypto in the Capitol: States Take the Lead on Strategic Bitcoin Reserves

In this piece, authors Katiana Thompson & Jonathan Mollod (Proskauer/Blockchain and the Law) discuss the emergence of Strategic Bitcoin Reserves (SBRs) as a policy tool at both federal and state levels in the United States. An SBR involves allocating public assets to hold Bitcoin as a long-term store of value, similar to gold reserves, in order to hedge against inflation and economic uncertainty. Recent legislation reflects a growing view of Bitcoin as a legitimate financial strategy rather than a purely speculative asset, while also serving as a signal that jurisdictions adopting such policies are pro-crypto and tech-friendly. This trend has gained traction amid shifting economic priorities under the new administration.

At the federal level, President Trump’s March 6, 2025 executive order established a Strategic Bitcoin Reserve and a United States Digital Asset Stockpile, directing the Treasury Department to hold Bitcoin obtained through forfeitures rather than selling it at auction. The order also called for the creation of an office to manage these reserves, including other seized digital assets, with certain exceptions. Shortly after, Senator Cynthia Lummis introduced the BITCOIN Act of 2025, which would codify the reserve into law and authorize the Treasury to acquire one million Bitcoin over five years, storing them securely for at least 20 years. The bill underscores bipartisan recognition of Bitcoin as a hedge against economic instability, and, alongside recent stablecoin legislation such as the GENIUS Act, signals momentum for broader federal engagement in digital asset policy.

States have also been moving forward with their own SBR initiatives. New Hampshire’s HB 302 authorizes its treasurer to invest up to 5% of public funds in precious metals or digital assets with a market cap over $500 billion—a threshold currently met only by Bitcoin—using secure custody or qualified custodians. Arizona’s HB 2749 creates a Bitcoin and Digital Assets Reserve Fund tied to the state’s unclaimed property laws, requiring the state to hold unclaimed digital assets for three years before liquidation, while retaining any staking rewards or airdrops. These state-level moves reflect diverse approaches to integrating Bitcoin into public asset management, complementing federal efforts and reinforcing the perception of Bitcoin as a strategic economic resource…

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