March 2025 is witnessing a major wave of change in how U.S. states approach cryptocurrency. Many states are actively introducing and passing legislative initiatives to promote cryptocurrency acceptance.
Recent developments over the past week show a clear transformation. U.S. legislators no longer view cryptocurrency merely as a speculative asset but as a strategic part of the financial future.
Kentucky: Protecting Bitcoin Rights and Cryptocurrency Mining
One of the most notable advances this month comes from Kentucky. On March 24, the governor signed the "Blockchain Digital Asset Act" (HB701) into law after the State Senate passed it with 37 votes in favor and 0 against.
The law protects residents' rights to self-manage Bitcoin while legalizing and encouraging cryptocurrency mining. This shows Kentucky wants to protect individual rights in the cryptocurrency space and position itself as a potential blockchain mining center.
With abundant energy from coal and hydroelectric sources, the state has a competitive advantage in attracting cryptocurrency mining companies. Data shows Kentucky accounts for 11% of the U.S. Bitcoin hashrate.
North Carolina: Cryptocurrency in Pension and Strategic Reserves
North Carolina legislators are going further by proposing cryptocurrency integration into the public financial system.
According to Bitcoin Law, Bill H506, introduced on March 24, allows investing up to 5% of the state's public funds in digital assets. Similarly, Bill S709, also allowing 5% public fund allocation, was submitted to the Senate on Tuesday.
Additionally, Bill H92 proposes allocating up to 10% of public funds to purchase digital assets as a strategic reserve.
If passed, these initiatives would mark a major turning point. North Carolina could become one of the pioneering states using cryptocurrency to protect public funds from inflation and economic volatility. Legislators are accelerating discussions, with expectations of a decision in the coming weeks.
Arizona: Moving Towards Digital Asset Reserves
Arizona is also joining the race. The state's House Rules Committee recently approved two bills: the Digital Asset Strategic Reserve Fund Bill (SB1373) and the Arizona Bitcoin Strategic Reserve Act (SB1025).
SB1373 allows creating a digital asset reserve fund financed by assets seized in criminal cases, managed by the state treasurer. The treasurer can invest up to 10% of the annual reserve fund and lend assets to generate additional revenue as long as financial risks are controlled.
Meanwhile, SB1025 allows the Arizona Treasury and pension system to invest up to 10% of their funds in Bitcoin. If a federal Bitcoin reserve is established, Arizona's Bitcoin reserve could be safely stored in a separate account within that fund.
Additionally, last week, the Oklahoma House passed the Bitcoin Strategic Reserve Bill (HB1203).
This bill allows the Oklahoma State Treasurer to invest public funds from the State General Fund, Revenue Stabilization Fund, and Constitutional Reserve Fund into Bitcoin and other major digital assets (assets with market capitalization over $500 billion), as well as stablecoins.
Half of U.S. States Have Introduced Bitcoin Reserve Bills
According to Bitcoin Law, 23 out of 50 U.S. states have introduced Bitcoin reserve bills. Matthew Sigel, Head of Digital Assets Research at VanEck, believes that if implemented, these bills could significantly drive Bitcoin purchases.
States that have introduced Bitcoin reserve bills. Source: Bitcoin Law"We have analyzed 20 state-level Bitcoin reserve bills. If implemented, they could drive purchases of $23 billion, equivalent to 247,000 BTC. This amount does not include any pension fund allocations, which could potentially increase if legislators proceed," Sigel predicts.
With support from the Trump administration, including establishing a Federal Bitcoin Strategic Reserve on March 7, states are seizing the opportunity to reshape their financial policies.
