Alabama, Minnesota Lawmakers Join Growing List of US States Pushing for Bitcoin Reserves

Lawmakers in Alabama and Minnesota have introduced new legislation to allow their states to invest in Bitcoin, joining a growing wave of US states exploring cryptocurrency reserves. This development, reported on April 3, 2025, underscores the increasing interest in Bitcoin as a strategic asset amid a broader national debate on the role of digital currencies in public finance.

New Bills in Alabama and Minnesota

In Minnesota, the Bitcoin Act (HF 2946) was introduced to the state’s House by Republican Representative Bernie Perryman on April 1, 2025, following a companion bill filed by GOP state Senator Jeremy Miller on March 17. The proposed legislation would enable the Minnesota investment board to allocate state assets into Bitcoin and other cryptocurrencies. It also includes provisions to allow state employees to add crypto to their retirement accounts, exempt crypto gains from state income taxes, and permit residents to pay state taxes and fees with Bitcoin.

Source: Bitcoin Laws

Meanwhile, in Alabama, Republican state Senator Will Barfoot introduced Senate Bill 283 on April 1, 2025, alongside a bipartisan group of representatives led by Republican Mike Shaw, who filed the identical House Bill 482. While the Alabama bills do not explicitly name Bitcoin, they limit the state’s crypto investments to assets with a minimum market value of $750 billion—a criterion that, as of now, only Bitcoin meets, with its market value hovering around $83,631 per coin on April 3, 2025.

The introduction of companion bills in both states is a common legislative strategy in the US, designed to expedite the bicameral process and accelerate the passage of laws.

Arizona currently leads in the US state Bitcoin reserve race. Source: Bitcoin Laws

A Nationwide Movement

The bills in Alabama and Minnesota add to a growing list of Bitcoin reserve initiatives across the US. According to data from the bill-tracking website Bitcoin Laws, 26 states have now introduced legislation to create Bitcoin reserves. Arizona is currently the closest to passing such a law, with its bills—SB1373 and SB1025—having cleared their assigned committees and advancing to a full floor vote, as reported in February 2025.

Other states, such as Oklahoma, have also made significant progress. Oklahoma’s House passed the Strategic Bitcoin Reserve Bill (HB 1203) with a 77-15 vote, positioning it among states like Texas and Utah in exploring Bitcoin as part of their public finance strategy.

Setbacks in Other States

Despite the momentum, not all states have seen success in their Bitcoin reserve efforts. Pennsylvania was one of the first to introduce a Bitcoin reserve bill in November 2024 with the Strategic Bitcoin Reserve Act (HB 2664), following the passage of the Bitcoin Rights Bill (HB 2481). However, the initiative was reportedly rejected, stalling the state’s ambitions to allocate up to 10% of its General Fund, Rainy Day Fund, and State Investment Fund into Bitcoin and crypto-based exchange-traded products (ETPs).

Similar setbacks have occurred in other states. According to a March 3, 2025, report by Barron’s, “red states” like Montana have faced political confrontations between the Democratic and Republican parties, leading to the rejection of Bitcoin reserve initiatives. Montana, along with North Dakota, South Dakota, and Wyoming, has seen its proposed bills killed, highlighting the challenges of navigating partisan divides on cryptocurrency policy.

Arizona currently leads in the US state Bitcoin reserve race. Source: Bitcoin Laws

A Polarizing Yet Promising Trend

The push for Bitcoin reserves reflects a broader national conversation about the role of cryptocurrency in government finance, spurred by figures like Wyoming Senator Cynthia Lummis and the Trump administration’s rumored proposal for a US strategic Bitcoin reserve. While states like Arizona and Oklahoma are making strides, the rejections in Pennsylvania, Montana, and other states underscore the contentious nature of these initiatives, with concerns ranging from cybersecurity risks to the environmental impact of Bitcoin mining.

As more states like Alabama and Minnesota join the race, the coming months will be critical in determining whether Bitcoin reserves become a mainstream component of public finance or remain a polarizing experiment in a handful of states.