It will be the next state to establish a strategic Bitcoin Reserve after New Hampshire, according to Johnny Garcia, managing director of institutional growth and capital markets at the Vechin Foundation in Texas.
In an exclusive interview with Beincrypto, Garcia explained that states with a pro-promoting leadership tend to follow the example of New Hampshire. Others, on the other hand, may adopt a more cautious, waiting approach.
Why states like Texas are likely to follow New Hampshire’s Bitcoin Reserve Lead
Vechain executives described the passage of New Hampshire House Bill 302 as a “landmark moment” for digital assets. He said the development underscores the growing recognition of Bitcoin as a strategic financial product.
It also lays the foundation for promoting wider blockchain adoption by normalizing digital assets in its public portfolio.
“Since president took office, momentum has been gathering at the state level, and there has been a sea change in the minds of national representatives across the general perception of US Bitcoin (and other crypto assets) that I have commented before,” Garcia told Beincrypto.
Importantly, he believes the move could encourage states that are already considering relevant legislation to accelerate their efforts. The latest data from the Bitcoin Act shows that as of May 2025, 37 digital asset-related invoices are active in 20 states.
However, Garcia emphasized that the success of these bills depends on a variety of factors. These include the national political situation, economic priorities, and risk tolerance.
“States with pro-leadership like Texas and Utah are likely to lead New Hampshire’s lead in a short time, and other countries may wait to see how things play out in the NH,” he added.
This dynamic has already been unfolding. For example, on May 6th, New Hampshire Republican Gov. Kelly Ayott signed HB302, allowing the state to allocate up to 5% of its Bitcoin funds.
Nevertheless, Arizona’s Democratic Governor Katie Hobbs, the rejected Senate Bill 1025, SB 1373, and SB 1024 cite concerns over Bitcoin volatility. Still, she signed HB 2749. The bill allows states to claim abandoned digital assets without direct investment.
As Texas is currently in the spotlight, there is a strong optimism that similar laws will be signed. Republican Gov. Greg Abbott has expressed a positive outlook for the industry. The Texas legislative meeting ends on June 2nd, so the decision could still be made at any time.
This trend underscores a clear difference in opinion between Democrats and Republicans about investing in digital asset reserves, Garcia also acknowledges inequality.
“These differences are not new. Just as there are conservatives, liberals, people who prefer risky, people who are safe and people who are safe, I chalk them up to a deeper perspective.
He acknowledged that filling this gap presents an important, but overcoming challenge. The executive noted that increased cooperation is facilitated through education and provides a deeper understanding of the potential benefits and risks of technology.
According to Garcia, the focus should be on identifying sharing goals, including leveraging blockchain to improve efficiency and transparency in government operations. This is an approach that could lay the foundation for bipartisan collaboration.
“The ultimate goal is to develop a thoughtful and balanced approach to digital assets that can benefit all Americans, regardless of political affiliation. This can be achieved by moving the conversation beyond the partisan line and focusing on long-term economic and technological implications,” Garcia revealed to Beincrypto.
How will state-level interest affect the adoption of broader cryptography?
It remains uncertain whether Democrats and Republicans will fully agree with digital assets. Nevertheless, the introduction of bills at state-level signals and increased debate shows increased interest and momentum.
Garcia said the shift shows a fundamental shift in how public finance views blockchain assets, and sees them as tools of innovation and resilience.
“It, coupled with the strength of Bitcoin, could help rekindle the debate about ‘digital gold’ and restructure public funds by introducing assets that can withstand decentralized censorship into traditional portfolios,” he commented.
Additionally, Garcia outlined three ways state-level profits can enhance accessibility and adoption of mainstream and enterprise cryptocurrencies.
Normalize digital assets as well as strategic asset classes. This encourages more institutional and corporate participation. This can lead to policymakers and the public with a better understanding of the risks and benefits of digital assets, leading to clearer and better regulation. It helps in building infrastructure such as regulated custody and chain audits. This makes it easier for businesses to adopt blockchain.
He also said accessibility is a challenge for mainstream adoption, while state-backed initiatives can promote partnerships between the public and private sectors. This collaboration could lead to the development of user-friendly wallets, storage services and decentralized finance platforms, increasing access to both retail and institutional users.
“This is Vechain’s focus on scalable enterprise-grade blockchain solutions, and we expect state-level adoption to create ripple effects and accelerate integration of digital assets into both the public and private sectors,” Garcia said.
Balance of state crypto holding opportunities and risks
The benefits provide optimism, but reserves have several impacts on common taxpayers. Garcia explained that supporters believe state investments could increase long-term returns, diversify away from inflation-prone assets, strengthen the state’s finances and benefit taxpayers. Still, he insisted,
“We haven’t yet reached the point where Bitcoin achieved a greater level of stability. If we saw similar pullbacks compared to previous cycles, it would significantly reduce interest in setting up reserves and could cost taxpayers money.”
Garcia warned that a significant price drop could lead to losses in the state’s reserves. Therefore, if the allocation is too large or poorly managed, this can pose a threat to financial stability.
“This could theoretically put pressure on changes in tax policy to offset these losses, but this will depend heavily on the size of the investment and the overall financial health of the state,” he told Beincrypto.
Garcia advocated educating taxpayers on both the benefits and risks to maintain public trust. He emphasized that the long-term impact depends on responsible strategic management of these reserves.
Beyond tax concerns, Garcia detailed some of the challenges the state may face when implementing crypto reserves.
“Managing this volatility within the Public Treasury framework requires a carefully considered and sophisticated risk management strategy, so digital assets volatility remains the biggest challenge facing states looking to implement reserves,” he commented.
Garcia also said that educating lawmakers and the public is essential for wider acceptance, as many state officials lack digital asset management expertise and require training or experts. He emphasized that uncertainty among federal regulators adds to the complexity. Therefore, clear rules regarding custody and reporting are required.
According to Garcia, transparency and strong cybersecurity measures are other important factors that are essential to ensuring the long-term success of these initiatives.
The road to the National Strategic Bitcoin Reserve
Meanwhile, Garcia pointed out that concerns about tax and market volatility are the reasons why President Trump’s Bitcoin reserves do not include provisions for investing state funds. Instead, it focuses on building stockpiles using confiscated assets.
However, national level bills are trying to achieve this. The Bitcoin Act, introduced by Senator Cynthia Ramis, proposes the establishment of a strategic Bitcoin Reserve.
The SBR includes obtaining 1 million Bitcoin over five years and holding it for at least 20 years. Garcia declared that allowing direct Bitcoin investment depends on changes in political and economic factors.
“Although bipartisan support will be required in both the House and Senate to allow such purchases, along with the president’s signature, lawmakers are far from being on the same page, as the recent stalls of genius acts show,” executives share with Beincrypto.
Garcia believes that a clear regulatory framework for crypto and a plan to incorporate Bitcoin into its strategic preparation will ultimately be established by law. Nevertheless, the timeline and specific details of these bills remain “hard to predict.”
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