In March 2025, several US states are experiencing significant changes in their cryptocurrency approach. Multiple states are actively introducing legislation to promote cryptocurrency adoption.
The developments in the past week clearly show a change. US legislators are no longer viewing cryptocurrencies solely as speculative assets but as a strategic part of the financial future.
Kentucky Protects Bitcoin Rights... Cryptocurrency Mining
One of the most notable advances this month came from Kentucky. On March 24th, the governor signed the "Blockchain Digital Assets Act" (HB701) after the state senate passed it with a 37-0 vote.
This law protects residents' right to self-custody BTC and legalizes and encourages cryptocurrency mining. It demonstrates Kentucky's commitment to protecting individual rights in the cryptocurrency space and establishing itself as a blockchain mining hub.
Thanks to abundant energy resources from coal and hydroelectric power, the state is competitive in attracting cryptocurrency mining companies. According to data, Kentucky accounts for 11% of the US BTC hashrate.
North Carolina: Cryptocurrencies in Pension Funds and Strategic Reserves
North Carolina legislators are taking a step further by proposing cryptocurrency integration into the public financial system.
According to the Bitcoin Law, bill H506 introduced on March 24th allows up to 5% of the state's public funds to be invested in digital assets. Similarly, bill S709 also allows a 5% public fund allocation and 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 these bills pass, it would be a major turning point. North Carolina could become one of the pioneering states protecting public funds from inflation and economic volatility using cryptocurrency. Legislators are accelerating discussions, with a decision expected within weeks.
Arizona Pushes Digital Asset Reserves
Arizona is also joining this competition. The state house rules committee recently approved two bills: the Digital Asset Strategic Reserve Fund Act (SB1373) and the Arizona Bitcoin Strategic Reserve Act (SB1025).
SB1373 allows the creation of a digital asset reserve funded by assets seized in criminal cases. The state treasurer can invest up to 10% of the reserve annually and can loan assets to generate additional revenue while financial risks are controlled.
Meanwhile, SB1025 allows the Arizona State Treasury and pension systems to invest up to 10% of their funds in BTC. Once a federal BTC reserve fund is established, Arizona's BTC reserves can be safely stored in a separate account within that fund.
Additionally, last week the Oklahoma House passed the Strategic Bitcoin Reserve Act (HB1203).
This bill allows the Oklahoma state treasurer to invest public funds from the state general fund, revenue stabilization fund, and constitutional reserve fund in BTC and large digital assets with a market cap exceeding $500 billion, as well as stablecoins.
Half of US States Introducing Bitcoin Reserve Bills
According to Bitcoin Laws, 23 out of 50 US states are introducing BTC reserve bills. Matthew Sigel, Digital Assets Research Director at Van Eck, believes these bills could drive substantial BTC purchases if implemented.
"We analyzed 20 state-level BTC reserve bills. If implemented, they could drive purchases of $23 billion, or 247,000 BTC. This amount is separate from pension fund allocations and likely to increase as legislators move forward," Sigel predicted.
Supported by the Trump administration, with the federal strategic BTC reserve established on March 7th, states are seizing the opportunity to reshape their financial policies.
