Several U.S. states have rejected proposals to establish Bitcoin reserves, citing concerns over market volatility and potential investment risks. This decision reflects broader state-level reconsiderations of crypto treasury proposals, including Arizona’s Senate Bill 1025. Florida and Arizona are among the latest to withdraw from such legislation, prioritizing risk mitigation with public funds. The move comes as various state officials push for cautious adoption of cryptocurrency in government settings, highlighting the challenge posed by Bitcoin’s unpredictable price fluctuations. The absence of substantial market reactions despite this rejection suggests a continued interest in exploring cryptocurrency use within financial frameworks. Texas and New Hampshire remain actively engaged with relevant legislation, indicating potential future impact on crypto policy. Experts believe these developments signal cautious engagement with digital assets, while also highlighting the challenges associated with integrating Bitcoin into state finance structures.