Arizona House Committee Greenlights Bitcoin Reserve Bill

The Arizona House of Representatives’ Commerce Committee has approved the Bitcoin Reserve Bill SB1373 with a narrow vote of 6-to-4, resulting in a modest 1.36% price increase in the past 24 hours, CoinMarketCap data shows.

This vote marks a significant step forward in Arizona’s efforts to integrate cryptocurrency into its financial framework, in line with the State’s growing interest in the management of digital assets.

Related: Bitcoin’s Getting New Big Players: Fresh Whales Amassing Millions

Bitcoin Reserve Bill Progresses Through Arizona Legislature

The bill, initially introduced in the Senate, has moved through the legislative process relatively quickly. It reached this key stage in the House after passing its third reading in the Senate with a 17-12 vote on February 27.

Sponsored by Republican Senator Mark Finchem, SB1373 aims to establish a “Digital Assets Strategic Reserve Fund” to be managed by the state treasurer. This fund would consist of money allocated by the legislature, along with any cryptocurrency assets seized by the state.

Notably, the bill includes safeguards to limit investment risk, preventing the treasurer from allocating more than 10% of the total fund deposits to any single fiscal year.

The legislation allows for the lending of digital assets to potentially generate returns, provided that such activities do not increase the state’s financial exposure.

Arizona Joins National Crypto Legislation Push

Arizona is currently trailing only Utah in the race among US states to establish formal crypto reserve investment policies.

While SB1373 advances, another Bitcoin-related bill, the Strategic Bitcoin Reserve Act (SB1025), co-sponsored by Republican Senator Wendy Rogers and Representative Jeff Weninger, has also gained momentum. SB1025, passed by the Senate with a 17-11 vote, takes a different approach by focusing on public fund investments in cryptocurrency assets.

Bitcoin Price Analysis Shows Mixed Signals

Bitcoin trades at $83,622.77, dropping 13% in the past 30 days. The Relative Strength Index (RSI) currently sits at 44.54, indicating a neutral to slightly bearish momentum.

The downward slope of the RSI line suggests that the likelihood of Bitcoin breaking above its 20-day Exponential Moving Average (EMA) at $85,356 is not particularly high at the moment.

Related: Diverging Paths in Crypto Futures: Bitcoin Volume Rises as Ethereum and Solana Remain Flat

Meanwhile, the MACD indicator recently confirmed a bullish divergence with the MACD line (blue) breaking above the signal line (orange).

The MACD histogram has also turned green, suggesting a significant possibility of higher price highs in the near term.