Key Takeaways
- If passed, it would make Arizona the first state in the United States to allocate public funds for Bitcoin investments.
- The proposed legislation permits up to 10% of public funds, including those managed by the state treasurer and retirement systems, to be invested in digital assets.
Arizona lawmakers are making strides in crypto adoption with the advancement of the Strategic Bitcoin Reserve Act (SB1025). The bill, co-sponsored by Senator Wendy Rogers and Representative Jeff Weninger, was approved by the Arizona State Senate Finance Committee on January 27 in a 5-2 vote. If passed, it would make Arizona the first state in the United States to allocate public funds for Bitcoin investments.
The proposed legislation permits up to 10% of public funds, including those managed by the state treasurer and retirement systems, to be invested in Bitcoin and other digital assets. According to the bill, these assets will be securely stored in a segregated account. Additionally, the legislation allows for the integration of state-held Bitcoin reserves into a federal Strategic Bitcoin Reserve if such a system is established by the US Treasury.
Dennis Porter, co-founder of the Satoshi Action Fund, highlighted Arizona’s leadership in this area, stating that it is the first state to advance such a bill through a legislative committee. Porter also noted that similar legislation is gaining traction across the United States, with at least 11 states, including Texas, Pennsylvania, and Oklahoma, proposing comparable Bitcoin reserve bills.
Lobbying efforts by the crypto industry have played a significant role in driving these legislative initiatives. In the recent election cycle, Arizona saw $5.9 million spent to support pro-crypto candidates.
Despite the progress, the bill’s journey to becoming law is far from over. It now moves to the Senate Rules Committee, which will set the parameters for debate and potential amendments. If approved by the full Senate, the bill will then proceed to the House of Representatives for consideration. No timeline has been confirmed for these next steps.
If enacted, the Strategic Bitcoin Reserve Act could modernize state finances and position Arizona as a pioneer in crypto adoption. Advocates argue that such measures provide a hedge against economic instability and offer long-term investment returns.
The bill’s advancement comes amid broader national discussions about cryptocurrency regulation and adoption. On January 27, the US Senate confirmed Scott Bessent as Treasury Secretary in a 68-29 vote. Bessent, known for his opposition to central bank digital currencies and support for Bitcoin, is expected to influence federal digital asset policies.
