The Bitcoin Coverage Institute (BPI) has launched a 30-page mannequin invoice designed to let US state treasuries deal with BTC as a strategic reserve asset, codifying all the things from multisignature custody to tax-advantaged financial zones. Titled the “State-Degree Strategic Bitcoin Reserve Toolkit,” the doc arrives amid rising institutional adoption of the asset class and lays out a path for states to “diversify treasury holdings, hedge towards forex debasement, and improve long-term fiscal stability,” a purpose the authors describe as a “paradigm shift in financial know-how”.
States Ought to Maintain 3% In Bitcoin
Authored by BPI’s head of coverage Zack Shapiro and analysis affiliate Zack Cohen, the toolkit asserts that present fiduciary mandates already empower treasurers to carry BTC and urges lawmakers to grab a “aggressive benefit” in attracting digital-asset companies . States adopting the framework could be required to create a Strategic Bitcoin Reserve (SBR) stored fully in chilly storage and managed via a Multi-Establishment Custody system that distributes keys amongst three to seven unbiased entities in order that “no single establishment, custodian, or particular person maintains unilateral management” over state cash.
The proposal obliges every state to earmark “at least three % of the prior fiscal 12 months’s common each day stability within the Common Working Fund” for annual Bitcoin purchases, with extra inflows permitted from seized belongings, cryptocurrency tax funds and a brand new class of tax-exempt Municipal BitBonds. As soon as acquired, Bitcoin “shall be held for a minimal interval of twenty years,” barring extraordinary legislative motion, and is explicitly prohibited from being lent, rehypothecated or positioned in spinoff contracts.
Part 5 imposes a real-time Proof-of-Reserves regime: the treasury should publish cryptographic signatures, pockets addresses and stability updates “inside one hour of any materials change,” giving the general public steady on-chain perception into state coffers. Biennial experiences should complement the on-chain knowledge with price foundation, efficiency evaluation and incident disclosures. Oversight is anchored by a seven-member Strategic Bitcoin Reserve Advisory Committee that features representatives from the governor, legislature, pension system, academia and the banking sector. The legislative audit division retains authority to probe this system at the very least as soon as each three years.
Past balance-sheet diversification, the invoice ventures into industrial coverage. It authorizes Bitcoin Tax-Advantaged Zones providing capital-gains exemptions, sales-tax reduction on mining {hardware} and payroll-tax rebates for companies deriving at the very least 60 % of income from BTC exercise . Mining itself is framed as an emissions-mitigation device: state businesses are instructed to focus on stranded power, flare-gas seize and renewable-grid balancing, with at the very least 5 % of mining proceeds flowing right into a devoted conservation fund.
The drafters envision an aggressive rollout. Inside 90 days of enactment a treasury must full its first buy; full operational capability—together with custody infrastructure, insurance coverage and reporting programs—have to be reached inside 120 days. Steady disaster-recovery drills and cyber-incident protocols underpin the reserve’s safety structure.
Notably, three US states have already put a strategic Bitcoin reserve into regulation. New Hampshire turned the pioneer on 6 Might 2025 when Governor Kelly Ayotte signed HB 302, authorizing the treasurer to allocate as much as 5 % of sure state funds to Bitcoin and different digital belongings.
Arizona adopted on 7 Might 2025 with HB 2749, making a Bitcoin and Digital Belongings Reserve Fund contained in the treasurer’s workplace to carry deserted or seized cryptocurrency in-kind quite than liquidate it. Texas joined on 20 June 2025 as Governor Greg Abbott permitted SB 21, the Texas Strategic Bitcoin Reserve and Funding Act, giving the comptroller specific authority to purchase and custody Bitcoin for the state.
At press time, BTC traded at $111,111.
Featured picture created with DALL.E, chart from TradingView.com
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