U.S. states are actively working on legislative reforms to allow direct investments in cryptocurrencies. The first approvals have been made, and processes are currently underway either at committee or assembly stages across numerous states. This article provides the latest updates on these legislative efforts and identifies the states showing significant interest in cryptocurrencies.
States Investing in Cryptocurrency
Julian Fahrer’s analysis covers the investments made in a publicly traded company formerly known as MicroStrategy, now Strategy. This company, once led by Michael Saylor, a known crypto skeptic, began adding Bitcoin (BTC) 
$80,861 to its reserves in 2020, thus consistently boosting its stock value.
Months ago, the company’s stocks reached an all-time high, reminiscent of the dot-com bubble era. The firm has become an appealing option for funds and investors interested in indirect BTC investments, earning the nickname “proxy Bitcoin ETF.” Even though an official Spot BTC ETF approval is expected in January 2024, MSTR shares continue to ignite interest among investors.
The company aims to expand its BTC reserve with more than $80 billion by 2027, continuously purchasing BTC. The chart below displays the MSTR investments from 14 U.S. states during the first quarter of 2025.
In the first quarter of 2025, 14 states reported $632 million in public pension and treasury funds invested in MSTR stocks. The increase was $302 million during that period, achieving a 44% rise following Trump’s governance.
Strategic Bitcoin Reserve
The states of Arizona and New Hampshire have approved laws allowing public funds to be used for BTC purchases. These legislative initiatives, referred to as the Strategic Bitcoin Reserve (SBR) laws, have been rejected in regions like Montana, North Dakota, and South Dakota. On May 7, Arizona became the second state to accept Bitcoin reserves, with more likely to follow suit.
Several states, including Texas (highlighted in blue), are continuing the legislative process. The distribution is as follows:
- 18 states are awaiting SBR approval.
- 7 states are considering genuine BTC reserves.
- 2 states are working on partial SBR plans.
- 5 states have rejected SBR proposals.
