U.S. states talking about bitcoin reserves

The idea of the U.S. government holding bitcoin is growing, so much so that states are starting to adopt the idea for their own treasuries.

Why it matters: Sometimes big new ideas have a way of taking hold in the states first.

Texas. The Lone Star State has the most intriguing concept: It opens up the state to accept donations of bitcoin.

• "This fund allows the state to own Bitcoin as a financial asset and for Texans to voluntarily donate Bitcoin to promote a shared ownership and community investment in Texas's financial future," the bill says.
• Zoom in: Axios Crypto suspects this idea is based on more than wishful thinking — Texas is home to most of the bitcoin mining in the U.S. The state is seen as being much more welcome to bitcoin than others.
• Texas has a complicated energy situation, and sometimes it needs a lot more power than it needs at other times (like when air conditioners come on in the summer). Bitcoin has helped justify more capital expenditure on energy.
• The comptroller is in charge of the state's BTC, and any of it that lands in its coffers has to be held for at least five years.

Pennsylvania. The main thing to understand about the Keystone State's bill is that it's dead on arrival. It was authored by two reps who did not survive their primaries and won't be returning for the new sessions.

• There are two things worth noting about this bill, however:

• The big theme is holding bitcoins as a hedge against inflation.
• It permits the state treasurer and any public retirement system to hold bitcoin.

Ohio: "A strategic bitcoin reserve fund aligns with the state's commitment to fostering innovation in digital assets and providing Ohioans with enhanced financial security," the Ohio bill, authored by State Rep. Derek Merrin says.

• It adds bitcoin to the list of property that might be seized by state law enforcement and how to dispose of it. In this case, it can be transferred to the state's bitcoin reserve fund.
• Ohio's bitcoins have to either be held by a qualified custodian or by a self-custody wallet controlled by the state treasurer.

Between the lines: No plan envisions costing taxpayers anything, though the Pennsylvania version opens the possibility of state expenditures with unclaimed property.