Key Takeaways
- Arizona's Bitcoin Reserve Act allows up to 10% public fund investments in Bitcoin.
- The bill is the first step toward establishing a state Bitcoin reserve.
- Other states, including Texas and Ohio, have proposed similar measures.
Arizona’s Senate Finance Committee has approved a bill that could make the state the first in the U.S. to allocate public funds to Bitcoin investments.
The Arizona Strategic Bitcoin Reserve Act (SB 1025), introduced by Senator Wendy Rogers and Representative Jeff Weninger, passed with a 5 to 2 vote.
Investment framework
The proposed legislation would allow public funds, including the state treasurer and retirement systems, to invest up to 10% of their holdings in Bitcoin and other cryptocurrencies.
The bill also suggests storing these assets in a secure, segregated account, should the U.S. Treasury establish a national Bitcoin reserve.
Legislative process
The bill now advances to the Senate Rules Committee for debate and then to the Arizona House of Representatives for consideration.
If passed, Arizona would be the first state to mandate Bitcoin investments for public funds.
National movement
Several other states, such as Texas, Pennsylvania, Ohio, and Oklahoma, have introduced similar proposals for crypto reserves.
The approval comes as Scott Bessent, a pro-crypto advocate, assumes the role of U.S. Treasury Secretary, potentially paving the way for clearer federal regulations on digital assets.
