1. Introduction

Legislation recognizing Bitcoin as a strategic reserve asset is under discussion in 20 U.S. states, with some states having already passed or rejected such bills. If enacted, these bills could introduce approximately $23 billion (247,000 BTC) into the Bitcoin market, representing 2.3% of Bitcoin’s total market capitalization (~$1.89 trillion). This could accelerate liquidity reduction and supply constraints.

However, uncertainties surrounding federal regulations, political differences among states, and Bitcoin’s price volatility pose significant obstacles to the realization of these bills. This analysis explores the background, legislative progress in key states, market impact, and regulatory risks associated with these efforts.

2. Overview of Bitcoin Strategic Reserve Bills

Bitcoin strategic reserve bills aim to legally permit state governments to hold Bitcoin as part of their financial reserves. This represents a departure from traditional reserve assets such as U.S. dollars, gold, and treasury bonds, marking Bitcoin as an official public financial asset.

Key drivers behind these bills include:

✔ Inflation risks → Persistent decline in the dollar’s value and rising national debt

✔ Instability in traditional financial systems → Increasing bank failures and liquidity crises

✔ Bitcoin’s fixed supply (21M BTC) and role as “digital gold”

✔ Pushback against Central Bank Digital Currency (CBDC) adoption

Given that Bitcoin’s 2024 halving has already occurred, additional buying pressure from state-level acquisitions could further amplify long-term price appreciation.

3. Legislative Efforts Across 20 U.S. States

Currently, approximately 20 states are considering Bitcoin strategic reserve asset bills, with some already in advanced legislative stages.

✔ States likely to implement the bill: Texas, Wyoming, Arizona

✔ States currently discussing the bill: Missouri, Oklahoma, etc.


Texas	Preparing for implementation	Strong pro-crypto policies
Wyoming	Bill passed	Experience with Bitcoin-friendly banking regulations
Arizona	Final discussions	Evaluating state-level Bitcoin adoption
Missouri	Under review	Considering partial allocation of public funds to Bitcoin
Oklahoma	Re-evaluating	Discussing tax policies related to crypto

Despite varying legislative timelines, a common trend is the increasing effort to integrate Bitcoin into public financial systems.

4. Market Impact Analysis

(1) Bitcoin Liquidity and Price Effects

If these bills pass, state governments could introduce a $23 billion Bitcoin purchasing wave, equivalent to 247,000 BTC (~1.2% of circulating supply). Given that the total circulating supply is approximately 19 million BTC, this government-level accumulation could intensify supply shortages, potentially driving prices higher.

Bitcoin’s supply is already tightening following the 2024 halving, and institutional demand has surged in early 2025 due to the growing adoption of Bitcoin ETFs. If state governments also begin large-scale Bitcoin acquisitions, this could further reduce available liquidity and drive Bitcoin’s price higher.

(2) Institutional Investment Expansion

State-level Bitcoin adoption could serve as a catalyst for broader institutional adoption.

The approval of Bitcoin spot ETFs (e.g., BlackRock, Fidelity) in 2024 has already encouraged institutional participation. As of early 2025, assets under management (AUM) in these ETFs have exceeded expectations, with growing capital inflows from pension funds and hedge funds. If state governments officially integrate Bitcoin into their reserves, pension funds, large corporations, and asset managers could accelerate their Bitcoin holdings, further increasing demand.

5. Regulatory Risks and Future Outlook

(1) Potential Conflicts with Federal Authorities

The Federal Reserve (Fed) and the Securities and Exchange Commission (SEC) classify Bitcoin as a commodity rather than legal tender. If individual states officially adopt Bitcoin as a strategic reserve asset, federal intervention or regulatory measures could arise.

Although the Trump administration has shown a pro-crypto stance since the 2024 election, it has not yet clarified its position on state-level Bitcoin holdings. Notably, there may be conflicts between the SEC’s existing regulatory framework and the conservative financial policies within the Republican Party, potentially leading to the establishment of new federal guidelines.

Some Republican lawmakers support recognizing Bitcoin as “digital gold” and advocate for state-level adoption, whereas the Treasury Department and the Fed emphasize the need for further research on Bitcoin’s role as a reserve asset. As a result, differences in policy between the federal and state governments will likely be a key factor influencing the pace of Bitcoin legislation implementation.

6. Conclusion: What Changes Could Bitcoin Reserve Bills Bring?

If these bills are enacted, they could signify more than just a policy shift—they could reshape public financial strategies. With some U.S. states moving toward official Bitcoin holdings, an estimated $23 billion in new demand could enter the market, reducing supply and potentially driving long-term price appreciation.

Additionally, this legislation could encourage further institutional investment. As Bitcoin spot ETFs gain traction, state-level Bitcoin adoption could push pension funds, corporations, and asset managers to increase their exposure to Bitcoin.

However, federal regulatory risks remain a key uncertainty. The SEC and Fed maintain that Bitcoin is a commodity, not a legal currency, and some political factions strongly oppose state-level Bitcoin holdings. Furthermore, Bitcoin’s high volatility could pose challenges for state financial management, potentially leading to limited and cautious implementation of these policies.

Ultimately, Bitcoin’s integration into mainstream financial systems is becoming more evident. Investors should closely monitor not only the passage of these bills but also the timing and scale of actual Bitcoin purchases by state governments. If these trends continue, Bitcoin could increasingly be recognized as a legitimate asset by both governments and institutions.

Research

Bitcoin Strategic Reserve: Legislative Efforts in 20 U.S. States and Market Implications

Elon Musk's Influence on the Cryptocurrency Market: A Research Analysis

Trump and Cryptocurrency: A Political and Financial Experiment That Breaks Boundaries

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