Bitcoin Reserve proposals in Wyoming, Montana, and North Dakota. Lawmakers in these states shot down bills that would’ve allowed public funds to be invested in Bitcoin, mostly because they see it as too risky for taxpayer money. In Wyoming, the idea didn’t even make it out of committee—died quietly before it could get any traction. Montana’s House voted it down 41-59, with folks like Representative Steven Kelly calling it “speculation” and arguing it’s their job to protect public funds, not gamble with them.
North Dakota’s bill also flopped in a House Vote, though the specifics of the tally are less clear—just a lot of cold feet over volatility. The vibe in these states seems to be caution first—Bitcoin’s wild price swings spooked enough legislators to kill the momentum. Supporters pushed the angle of hedging against inflation or getting better returns than boring old bonds, but that didn’t sway the majority.
Meanwhile, other states like Utah and Arizona are still in the game, moving their own proposals forward, so it’s not a total washout for the idea—just a big stumble in these three. Lawmakers there clearly aren’t ready to roll the dice on crypto with the public’s cash.
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Crypto laws across U.S. states are a mixed bag—some are pushing hard to embrace digital assets, while others are lagging or outright skeptical. Wyoming’s a standout: it’s been a crypto pioneer since 2018, exempting virtual currencies from money transmission laws and property taxes, and even letting companies use blockchain for corporate records.
It’s got a “Financial Technology Sandbox” too, encouraging businesses to test new ideas without heavy red tape. Montana’s another friendly one—no money transmitter license needed for crypto businesses, and it’s got tax breaks for mining operations, making it a quiet haven for blockchain startups.
On the flip side, New York’s got the BitLicense, a tough licensing regime since 2015 that’s scared off some crypto firms with its strict rules—think detailed audits and high compliance costs. California’s joining that club with its new Digital Financial Assets Law, signed in 2023, which hits businesses with a licensing requirement starting mid-2025, plus hefty penalties for slip-ups. Hawaii’s a nightmare for crypto exchanges—its rules demand they hold cash reserves equal to their crypto holdings, so big players like Coinbase have just pulled out.
Wyoming’s carved out a reputation as a crypto haven with some of the most progressive regulations in the U.S. Since 2018, it’s been stacking up laws to attract blockchain businesses and investors. One big move: it exempted cryptocurrencies from state money transmission laws, so companies handling Bitcoin or Ethereum don’t need a traditional money transmitter license. That cuts a ton of red tape compared to states like New York. It also said “no thanks” to property taxes on crypto holdings—buy, sell, or HODL, and Wyoming won’t ding you for it.
Texas doesn’t require a money transmitter license for selling Bitcoin, but it’s not all rosy lawmakers there have flirted with restrictive bills, like banning anonymous crypto trades. Colorado’s got a flat 4.4% income tax on crypto gains and lets you pay state taxes with it, but it’s not as laissez-faire as Wyoming. Arizona’s pushing forward with a bill to make Bitcoin legal tender and treats airdrops as tax-free at the state level, though it still has a 2.5% income tax. Utah’s in the race too, with a pending bill to let the state invest 10% of its funds in Bitcoin—still needs Senate approval as of early 2025.