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- Arizona lawmakers advance a bill allowing up to 10% of public funds to invest in Bitcoin.
- The Arizona Bitcoin Reserve Act moves closer to becoming law after committee approval.
- Arizona could become the first state to invest public funds in Bitcoin if the bill passes.
Arizona lawmakers have approved a bill to allow public funds to invest in Bitcoin and other digital assets. The state Senate Finance Committee passed the measure, known as the ‘Arizona Strategic Bitcoin Reserve Act’ (SB1025), in a 5-2 vote on January 27.
BREAKING: 🇺🇸US State of Arizona Senate Finance Committee passes the Strategic #Bitcoin Reserve Act!
— Crypto India (@CryptooIndia) January 28, 2025
Next step: The bill will be submitted to the Senate Rules Committee. If approved by the full Senate, it will move to the House of Representatives for further deliberation. pic.twitter.com/YJzC1pacg5
Details of the Proposed Legislation
The state may spend up to 10% of public funds on digital currencies such as Bitcoin, according to the proposed legislation. It includes funds held by the state treasurer and retirement systems.
The bill also outlines provisions for safeguarding these digital assets. If the federal government creates a Strategic Bitcoin Reserve, Arizona’s holdings would be stored in a segregated account within that reserve.
National Context and New Treasury Leadership
On the same day, the U.S. Senate confirmed Scott Bessent as Treasury Secretary with bipartisan support. Bessent has been an opponent of the central bank digital currencies and is viewed as pro-Bitcoin. His confirmation adds another dimension to discussions on digital assets in government finance.
Next Steps for the Legislation
The bill is now headed to the Senate Rules Committee after being approved by the Finance Committee. This committee will write rules for floor debate and amendments. The legislation will then go to the House of Representatives if it is approved by the full Senate.
Broader Trends in State Legislation
Arizona is the first state to advance a bill specifically focused on creating a Bitcoin reserve through a legislative committee. If enacted, Arizona would become the first state to officially allocate public funds to Bitcoin investments.
As of January 27, eleven states have introduced their own Bitcoin reserve bills. Observers suggest this number could soon rise to 16 as interest grows in digital asset investment at the state level.