Ben Strack

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forwardguidance" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



New Hampshire has won the <a href="https://blockworks.co/news/us-states-btc-reserve-proposals">race</a> among US states mulling laws to allow digital assets investments and/or create reserves.



How quickly should we expect a wave of others to follow suit?



Headed to Arizona Gov. Katie Hobbs’ desk, as of yesterday, was a law to establish a state treasurer-run “digital assets strategic reserve fund.”&nbsp;



But Hobbs could veto this, given that she rejected a separate bill last week to allow a state public fund to invest up to 10% in “virtual currency holdings.” She <a href="https://www.azleg.gov/govlettr/57leg/1r/sb1025.pdf">called</a> those “untested investments.”&nbsp;



So if Arizona is not next, who will be? Perhaps North Carolina or Texas, filings compiled <a href="https://bitcoinlaws.io/reserve-race">here</a> indicate.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdG7sUR5W-dDhK0Tl6sGReRcz4ng46eXGsVH4dmgZpuyCTv2-w0AmFXQTEV-73IW7tSq7JCFa_pPmFR_-uA-vPYyDU2oKdVsW9brspe51lPRLlRpmDHA5CBv0G1bDu8Ibu5h-zpqg?key=pQwIpy1cyCnnxyZ6QtSKr6nl" alt=""/></figure>



North Carolina’s Digital Assets Investments Act would authorize the state treasurer to invest up to 5% of any designated funds in “qualifying digital assets.” That passed a second reading in the House (71-44) on April 30 and moved on to the Senate.&nbsp;



That bill would also “examine the feasibility” of allowing state retirement income plan members to make such investments (via crypto ETPs) and study a state reserve to hold seized or forfeited crypto.



Looking at Texas, the state’s <a href="https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&amp;Bill=SB21">proposed</a> Strategic Bitcoin Reserve and Investment Act would establish a special fund to invest in crypto assets with a market cap of $500 billion or more (currently only BTC).&nbsp;



Ishmael Green, a partner at law firm Diaz Reus, said he expects half a dozen or so states to follow New Hampshire in the near-to-medium term — “because states are looking to hedge against inflation, in addition to protecting their balance sheets.”



Indeed, the Texas bill text states the following:



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfgo-iSyTKee3EEbRELZLoOh9Tnkgr0tFqp-uHpzOGI32WRd6--zwM4taciCIYmZaifGdBpsQ6P26taYo2_9xOTkCRtPmfxFvJxVLM09eXLdKieCD06cHrY_qyAW6eCt9Fzh0UdJA?key=pQwIpy1cyCnnxyZ6QtSKr6nl" alt=""/></figure>



“Long term, these sorts of laws will lead to an upward price pressure and supply shortage, as states and other institutional entities scramble to accumulate more bitcoin,” Green told me.



As for how the North Carolina and Texas governors feel about crypto, if these bills reach their desks? NC Gov. Josh Stein hasn’t said much on the topic, but has <a href="https://www.wfae.org/2025-03-03/nc-invest-cryptocurrency-destin-hall-bill-bitcoin">indicated</a> support for the legislation.



In a November X <a href="https://x.com/GregAbbott_TX/status/1855015903496147225">post</a>, Texas Gov. Greg Abbott wrote: “Texas is already the home of crypto mining. This session Texas should become the crypto capital.”



FalconX research head David Lawant said he too expects at least a few more states to enact these types of laws in the next six to 12 months.&nbsp;



But he’s watching out for a Bitcoin Policy Institute framework (set for release in June) that aims to help states craft effective BTC reserve laws.



“A common issue with many of the current proposals is that they’re not as clearly written or thoughtfully structured as they could be,” Lawant told me.



Suffice it to say, there’s plenty more where this came from.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

states

Newsletter

Blockworks Research