Bitcoin (BTC) faces U.S. state pushback, but price holds strong above $95K

The Bitcoin price remains steady above $95,000 following Florida's withdrawal of two major crypto treasury bills.

The Bitcoin (BTC) price remains above $95,000 despite two Florida treasury bills, which would have allocated up to 10% of certain state funds into the token, being “indefinitely postponed and withdrawn from consideration.”

The bills, House Bill 487 and Senate Bill 550, were tabled by the Florida House and Senate, which passed over 230 other laws this session.

The session, which began in January, adjourned on May 2 without taking action on the proposed strategic reserve legislation.

Bitcoin price holding strong despite U.S. state bills face setbacks

The bills’ failure to pass comes after a busy period of activity in several U.S. states on similar proposals.

Arizona, Pennsylvania, Montana, and Oklahoma have now seen bills to invest state funds in Bitcoin hit legislative roadblocks this year.

Florida’s bills, which were assigned to the Regulated Industries Committee and the Banking and Insurance Committee respectively, both passed out of their respective committees in March.

The bills would have authorized Florida's Chief Investment Officer to allocate up to 10% of certain state funds into Bitcoin.

The legislation specifically proposed investing a portion of Florida's Strategic Reserve Fund into the token.

The bills also aimed to diversify the state's portfolio with "a new generation of value-oriented assets."

Both bills were tabled in the Florida House on April 27, according to the state’s legislative record.

They were later withdrawn by the Senate on May 1.

Bitcoin price outlook: Arizona focused on seized funds for digital assets

The same day Florida tabled its bills, Arizona’s House Bill 1025 was vetoed by Governor Katie Hobbs.

The bill would have allowed the state to create a digital assets reserve using seized funds.

"I am not comfortable with the state making any new risky or untested investments with taxpayer dollars," said Hobbs in her rejection letter.

The governor's veto came as a setback for state-level crypto adoption plans.

But two more proposals in Arizona are still progressing.

"Two more chances this session for Arizona to become a Bitcoin state," said Dennis Porter, CEO of the Satoshi Action Fund.

House Bill 2749, which proposes a budget-neutral method to build a Bitcoin reserve using unclaimed property fund profits, was passed by the House and sent to the Senate on April 26.

The Senate bill, SB 1373, would allow up to 10% of Arizona's treasury to be invested in digital assets. It passed out of the Senate Appropriations Committee on April 25 and is now awaiting action on the Senate floor.

Bitcoin price could yet hit $180K in 2025, says VanEck

Several other states are also considering similar legislation.

In total, seven state bills that would invest state funds in Bitcoin have now been tabled or stalled in 2024.

Despite short-term political hurdles, long-term Bitcoin price forecasts remain bullish. In December 2024, investment firm VanEck predicted the BTC price could reach $180,000 by 2025.

The forecast, reported by Benzinga, assumes post-halving supply tightening, kicking off around March 2024, will continue through 2025.

This will drive up demand from institutions, leading to increased BTC price action as they invest via ETFs and other products.

Macro trends will also play a role, with governments seeking out inflation-resistant assets like Bitcoin to manage their own finances.

If more states adopt neutral-funding methods, like using unclaimed property funds or seized assets for Bitcoin reserves, these bills could succeed quietly without sparking public backlash.

This could ultimately help to boost investor confidence and push the Bitcoin price outlook toward $180,000.

Several other state bills are still in early review stages.

In Alabama, a bill to create a Bitcoin futures contract task force passed the House and is now in the Senate.

In Missouri, a bill to study the feasibility of investing state funds in Bitcoin passed out of a House committee and is awaiting action on the House floor.

In Texas, a bill to allow the state to invest in Bitcoin and other digital assets passed out of a House committee and is proceeding to the Calendars Committee.

As advocacy groups like the The Satoshi Action Fund continue to lobby for widespread adoption of strategic Bitcoin reserves, the legal and political landscape is evolving rapidly.

The outcome of these legislative efforts could have far-reaching implications for the future of both Bitcoin and the U.S. financial system.