Hawaii Bitcoin Reserves and Cryptocurrency Laws

Hawaii Bitcoin Reserves and Cryptocurrency Legislation

Hawaii Bitcoin Reserve Overview

No Official Reserves
Neutral Regulatory Status
Easing Restrictions for Crypto Businesses

Hawaii Bitcoin Reserves

Hawaii Legislative Breakdown

State	BTC Reserves	% of Global Holdings	Legal Status	Last Updated	Key Laws and Regulations
Hawaii (HI)	No Official Reserves	0%	Neutral	2025-03-13	Hawaii Money Transmitters Modernization Act (2024): Eliminates requirement for crypto companies to obtain a state-issued money transmitter license SB 1127 (2025): Proposed allowing state agencies to accept cryptocurrency for fines, taxes, and fees; pending in legislature High state income tax (up to 11%) and capital gains tax (7.25%) apply to crypto earnings Digital Currency Innovation Lab (DCIL) ended June 30, 2024, leading to relaxed regulations for crypto exchanges ~70,000 residents (~5% of population) use crypto; $1.2B in transactions (2023–2024, est.) Approximately 10 Bitcoin ATMs, primarily in Honolulu (2024) No specific legislation for state-held Bitcoin reserves as of 2025

Hawaii Bitcoin Reserve Status

Current status: NO OFFICIAL RESERVES

Hawaii has not established a state Bitcoin reserve and shows reluctance toward such initiatives, with sentiment suggesting it may be among the last states to adopt a strategic Bitcoin reserve. The state has shifted to a more neutral regulatory stance, easing restrictions on crypto businesses through the Money Transmitters Modernization Act and the end of the Digital Currency Innovation Lab in 2024.

No funds have been allocated for Bitcoin reserves. Hawaii prioritizes regulatory adjustments to facilitate crypto business operations over state-held cryptocurrency reserves.

7/1/2024

REGULATIONS EASED

The Hawaii Money Transmitters Modernization Act took effect, removing the requirement for crypto companies to obtain a state-issued money transmitter license, following the closure of the Digital Currency Innovation Lab.

3/13/2025

PROPOSED

SB 1127 introduced to allow state agencies to accept cryptocurrency for fines, taxes, and fees, indicating a potential shift toward broader crypto integration.

6/30/2024

PROGRAM ENDED

The Digital Currency Innovation Lab (DCIL) concluded, leading to relaxed regulations and enabling crypto exchanges like Coinbase to operate in Hawaii without a state license.

Hawaii Bitcoin Reserves and Cryptocurrency Legislation

Hawaii Bitcoin Reserve Overview