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The Arizona Senate Finance Panel has approved Bill SB1025, referred to as the “Arizona Strategic Bitcoin Reserve Act.”
The measure received a vote of 5-2 in favor. It was co-sponsored by State Senator Wendy Rogers and Representative Jeff Weninger, with the intention of permitting public funds in Arizona, including state budgets and retirement plans, to allocate up to 10% in Bitcoin (BTC) and other digital currencies.
This legislation will be sent to the Senate Rules Panel, which will set the framework for discussions and possible revisions. If it gains approval from the entire Senate, the bill will progress to the Arizona House of Representatives.
If implemented, Arizona would be the pioneering state in the U.S. to integrate Bitcoin into its financial framework. The suggested legislation also incorporates provisions to guarantee that government-held Bitcoin is safely stored in distinct accounts, promoting responsible oversight of these digital currencies.
Federal Strategic Bitcoin Reserve
The bill further endorses the creation of a potential federal strategic Bitcoin reserve for safeguarding cryptocurrency assets owned by various states.
Denis Porter, CEO of the Satoshi Action Fund, remarked that Arizona’s initiative is part of a broader movement, with eleven states currently proposing analogous Bitcoin reserve legislation.
The progression of this bill corresponds with recent shifts in federal cryptocurrency regulations. The U.S. Senate recently confirmed Scott Bansen as Secretary of the Treasury, who has shown support for Bitcoin while opposing central bank digital currencies.
Last year, the Arizona Senate approved a measure urging the state retirement system to explore Bitcoin ETFs as a viable investment avenue. This legislation highlighted the importance of partnering with SEC-approved companies prior to making any additions to the portfolio.
