Connecticut enacts legislation prohibiting the establishment of a Bitcoin reserve by the state.
In a growing trend of adopting cryptocurrency as a strategic financial asset, three U.S. states - New Hampshire, Texas, and Arizona - have passed legislation to establish state-managed Bitcoin reserves. Connecticut, on the other hand, has imposed a blanket prohibition on cryptocurrency adoption by state institutions, making it one of the most restrictive jurisdictions in the U.S. regarding this matter.
Leading the pack is New Hampshire, which became the pioneer state to formally integrate crypto into its official investment portfolio. House Bill 302, passed in early 2025, authorises the state treasurer to invest up to 10% of public funds in Bitcoin and other large-cap digital assets with market caps exceeding $500 billion.
Texas has gone a step further by not only passing legislation but also funding a strategic Bitcoin reserve. Senate Bill 21 and House Bill 4488, signed into law by Governor Greg Abbott in June 2025, allow the State Comptroller to manage a $10 million Bitcoin reserve. Texas's approach includes strong safeguards ensuring the reserve is used solely for investment in Bitcoin and excludes other cryptocurrencies by limiting assets to those with market caps above $500 billion (currently only Bitcoin).
Arizona has passed multiple bills related to Bitcoin reserves. House Bill 2324, passed by the Arizona House in June 2025, proposed creating a Bitcoin reserve funded through property confiscated via criminal asset forfeiture. This would have been a second reserve bill following HB 2749, which created a reserve funded by unclaimed property, staking rewards, and airdrops. These initiatives show Arizona’s push to incorporate Bitcoin into state finance without directly risking taxpayer funds, pending the governor's approval.
Connecticut's prohibition on cryptocurrency adoption by state institutions is reflected in House Bill 7082, signed into law by Governor Ned Lamont on June 30, 2021. The law mandates that crypto businesses operating under the state's jurisdiction maintain a 1:1 reserve backing for all customer-held digital assets and adopts a broad definition of "virtual currency" under section 36a-596 of the state's general statutes. The law also implements extensive regulatory updates to the state's money transmission framework.
Meanwhile, Arizona's veto of House Bill 2324 removes the state from ongoing efforts to integrate Bitcoin into public treasury strategies. The veto may discourage local law enforcement from engaging in digital asset investigations due to the redirection of forfeited assets away from local agencies.
As of mid-2025, New Hampshire, Texas, and Arizona are the primary U.S. states beyond Connecticut that have passed legislation to establish state-managed Bitcoin reserves. Few central banks see Bitcoin reserves on the horizon, but interest in diversification still grows. Other U.S. states, including Arizona, are reviewing legislation focused on creating state-managed Bitcoin or digital asset reserves.
- Arizona's veto of House Bill 2324 halted its plans to create a second Bitcoin reserve backed by property confiscated via criminal asset forfeiture, as proposed in House Bill 2324.
- In a sharp contrast to these developments, Connecticut's House Bill 7082, effective since June 30, 2021, imposes stringent regulations on crypto businesses operating within its jurisdiction, including a 1:1 reserve backing for all customer-held digital assets.
- Texas's strategic Bitcoin reserve, authorized by Senate Bill 21 and House Bill 4488, amounts to $10 million, and it operates within the guidelines set by the State Comptroller, limiting assets to large-cap digital assets with market caps exceeding $500 billion (currently only Bitcoin).
- The business world is abuzz with news about a growing trend of states adopting cryptocurrency as a strategic financial asset. Apart from Connecticut, states like New Hampshire, Texas, and Arizona have actively participated, setting up state-managed Bitcoin reserves.
- As of mid-2025, New Hampshire, being the pioneer state, is ahead in integrating crypto into its official investment portfolio, having passed House Bill 302 in early 2025, authorizing the state treasurer to invest up to 10% of public funds in Bitcoin and other large-cap digital assets with market caps exceeding $500 billion.
