Bitcoin Reserve Bills Passed in Arizona, Rejected by Wyoming and Montana

Arizona is making a big move into Bitcoin. Lawmakers just passed two bills in the state Senate that could bring crypto into government reserves. Meanwhile, states like Wyoming and Montana are not buying into it, rejecting similar proposals over concerns about risk.

Arizona Senate Gives Bitcoin the Green Light

On Feb. 27, Arizona’s Senate approved two bills focused on Bitcoin. The first, SB 1373, would set up a Digital Assets Strategic Reserve Fund. This fund, managed by the state treasurer, would include state-appropriated money and seized digital assets.

To keep things in check, the bill caps crypto investments at 10% of total deposits per fiscal year. The state could also loan out some of its holdings to generate returns—but only if there’s no extra financial risk.

The second bill, SB 1025, takes things even further. Co-sponsored by Senator Wendy Rogers and Representative Jeff Weninger, it allows public funds to be invested in Bitcoin and other cryptocurrencies. That means Arizona wouldn’t just be holding onto seized assets—it could actively buy and invest in Bitcoin.

Both bills now head to the House of Representatives for the final decision. If passed, Arizona could become the first U.S. state to formally hold Bitcoin in its reserves.

Why Wyoming and Montana Aren’t On Board

While Arizona is charging ahead, Wyoming and Montana have taken the opposite stance. Lawmakers in these states have shut down similar proposals, saying Bitcoin is too unstable to be part of state finances. With its wild price swings, they argue, it’s just too risky.

This split reflects the broader national debate over Bitcoin’s role in government. Some states, like Utah, are warming up to the idea, but others are staying cautious. Meanwhile, 18 states are still waiting on their own Bitcoin reserve proposals to move forward.

Crypto advocate Dennis Porter, founder of Satoshi Action Fund, believes that federal regulations are coming soon. He predicts that stablecoins, market structures, and Bitcoin reserves will be addressed in that order. For now, though, it is up to individual states to decide where they stand.

Bitcoin’s Price Takes a Hit

Arizona’s push for Bitcoin reserves comes at a rough time for the market. Bitcoin recently dropped below $80,000 and could slide further to $70,000–$75,000, according to analysts. It’s already down 17% this week, and Trump’s tariff policies are not helping investor confidence.

Still, Bitcoin diehards are not worried. Michael Saylor, a longtime Bitcoin advocate, is not backing down. In response to the market dip, he joked: “Sell a kidney if you must, but keep the Bitcoin.” 

While Saylor keeps pushing for a U.S. Bitcoin reserve, others see the latest drop as proof that Bitcoin is not stable enough for government use.

Sell a kidney if you must, but keep the Bitcoin.

— Michael Saylor⚡️ (@saylor) February 28, 2025

What’s Next?

If Arizona’s House approves these bills, it could set an example for other states looking into Bitcoin reserves. But with Wyoming and Montana rejecting the idea, not everyone is convinced yet.