David Edwards
The “Arizona Strategic Bitcoin Reserve Act” (SB1025) was passed by the state Senate Finance Committee on January 27 by a vote of 5-2, marking a major step in Arizona’s adoption of Bitcoin. Senators Wendy Rogers and Jeff Weninger are co-sponsors of the bill, which would let the state to invest up to 10% of public funds, including those under the control of the state treasurer and retirement systems, in Bitcoin and other digital assets.
The law’s provision for safely storing holdings of digital assets is one of its distinctive features. According to the bill, if the U.S. Treasury Secretary establishes such a framework for government assets, it may be possible to create a segregated account within a future federal Strategic Bitcoin Reserve.
The same day, Scott Bessent was approved as Treasury Secretary by the U.S. Senate by a vote of 68-29. Bessent’s leadership may have an impact on federal policy pertaining to digital assets. He is well-known for his support of Bitcoin and opposition to a central bank digital currency (CBDC).
SB1025 now goes to the Senate Rules Committee for additional review after being approved by the Senate Finance Committee. There, it will be discussed and any necessary adjustments will be decided. The legislation will go to the Arizona House of Representatives for consideration if it is approved by the entire Senate.
Arizona is the first state to have a Bitcoin reserve measure pass a legislative committee, according to Dennis Porter, CEO of the Satoshi Action Fund, who emphasized Arizona’s innovative position in Bitcoin legislation. Arizona would be the first state in the US to formally allot public monies to Bitcoin if the bill were to become law.
Porter also disclosed that as of January 27, 11 states had issued comparable Bitcoin reserve bills, and that number might soon rise to 16.
