Key Points
- The Arizona Senate Finance Committee approves the “Arizona Strategic Bitcoin Reserve Act” allowing public funds to be invested in Bitcoin.
- This could lead to the establishment of a federal Strategic Bitcoin Reserve for state-held cryptocurrency assets.
The “Arizona Strategic Bitcoin Reserve Act” or SB1025 has been given the green light by the Arizona Senate Finance Committee. This Act, which is co-sponsored by State Senator Wendy Rogers and Representative Jeff Weninger, proposes that up to 10% of Arizona’s public funds be invested in Bitcoin and other digital currencies.
The bill will now be presented to the Senate Rules Committee. This committee will set the guidelines for the debate and potential amendments on the Senate floor. If the Senate approves the bill, it will then be forwarded to the Arizona House of Representatives.
First State to Incorporate Bitcoin
If the bill becomes law, Arizona would be the pioneer U.S. state to incorporate Bitcoin into its financial strategy. The bill proposes measures to securely store government Bitcoin holdings in separate accounts to ensure responsible management of these digital assets.
The proposed legislation also backs the potential establishment of a federal Strategic Bitcoin Reserve. This reserve would safeguard state-held cryptocurrency assets.
Broader Trend
Dennis Porter, CEO of the Satoshi Action Fund, points out that Arizona’s initiative is part of a wider trend. He notes that eleven states have already proposed similar Bitcoin reserve bills.
The progression of this bill is in line with recent developments in federal cryptocurrency policy. Scott Bessent, the newly confirmed Treasury Secretary, has expressed support for Bitcoin while opposing central bank digital currencies.
Previously, the Arizona State Senate approved a bill encouraging state retirement systems to consider Bitcoin ETFs as potential investment options. The bill stressed the importance of collaborating with SEC-approved firms before making any additions to their portfolios.