Arizona's Bitcoin Bill Breaks Ground — Other States Follow

On January 27, the Arizona Senate Finance Committee approved the “Arizona Strategic Bitcoin Reserve Act” (SB1025) in a 5-2 vote

Arizona Senate Committee Approves Bill to Invest Public Funds in Bitcoin

An Arizona Senate committee has approved a bill that would permit the state to invest a portion of its public funds in Bitcoin, making Arizona the first U.S. state to officially take such a step.

The bill, titled “Arizona Strategic Bitcoin Reserve Act” (SB1025), was approved by the Senate Finance Committee in a 5-2 vote on January 27. It now advances to the Senate Rules Committee for further consideration.

Co-sponsored by State Senator Wendy Rogers and State Representative Jeff Weninger, the bill proposes to allocate up to 10% of public funds, specifically those managed by the state treasurer and retirement systems, for investment in Bitcoin and other virtual currencies.

If passed into law, Arizona would become the first U.S. state to directly invest public funds in Bitcoin, marking a significant development in the state's embrace of cryptocurrency at a government level.

The bill also includes provisions for securely holding digital assets, potentially utilizing a federally established Strategic Bitcoin Reserve if created by the U.S. Secretary of the Treasury.

Arizona’s Bitcoin Bill Breaks Ground — Other States Follow

Arizona's pursuit of crypto-related initiatives is part of a broader trend among U.S. states. According to Dennis Porter, co-founder of the Satoshi Act Fund, eleven states have introduced Bitcoin reserve bills, with the number expected to reach 15 or 16 soon.

“Eleven states have already introduced Bitcoin reserve bills, and we expect 15 or 16 by the end of the session. It's expanding rapidly,” Porter said.

The surge in Bitcoin reserve legislation highlights the growing influence of the cryptocurrency sector. In Arizona, the industry played a key role during the last election cycle, allocating $5.9 million to support candidates who favored crypto policies. This strategic lobbying effort seems to be paying off as the state leads the way in Bitcoin adoption.

Porter specifically pointed to Arizona's achievement in being the first state where a Bitcoin reserve bill has successfully cleared a legislative committee.

“If this bill becomes law, Arizona will officially lead the nation in government-level Bitcoin investment,” Porter stated.

What's Next for the Bill?

Following approval by the Senate Finance Committee, the bill will now be reviewed by the Senate Rules Committee to determine the parameters of floor debate and potential amendments.

If it clears that stage, the bill will proceed to a full Senate vote before moving to the House of Representatives for further consideration.

While no specific date has been set for the next stage, the momentum suggests that Arizona lawmakers are keen on advancing the bill swiftly.

The bill also aligns with broader conversations at the national level about cryptocurrency regulation and adoption. Notably, U.S. Treasury Secretary Scott Bessent, who was recently confirmed by the Senate, has expressed support for Bitcoin and opposition to a central bank digital currency (CBDC).