Arizona Senate Advances Bold Bitcoin Reserve Bill

Arizona's Senate committee has advanced a bold Bitcoin reserve bill, SB1025, which aims to allow up to 10% of the state's public funds, including state treasurer and retirement system reserves, to be invested in Bitcoin (BTC) and other digital assets. The bill, co-sponsored by State Senator Wendy Rogers and Representative Jeff Weninger, was approved in a 5-2 vote and will now proceed to the Senate Rules Committee for further debate and potential amendments.

If passed into law, Arizona would become the first U.S. state to incorporate Bitcoin into its financial strategy. The proposed legislation includes measures for securely storing government Bitcoin holdings in segregated accounts, ensuring these digital assets are managed responsibly. Additionally, the bill supports the potential creation of a federal Strategic Bitcoin Reserve, which could store state-held cryptocurrency assets.

The advancement of the bill aligns with recent developments in cryptocurrency policy at the federal level. The U.S. Senate recently confirmed Scott Bessent as Treasury Secretary, with Bessent voicing support for Bitcoin while opposing central bank digital currencies. Last year, the Arizona State Senate urged state retirement systems to monitor Bitcoin ETFs as potential investment options.

Dennis Porter, CEO of the Satoshi Action Fund, highlighted that Arizona's move is part of a broader trend, with eleven states already introducing similar Bitcoin reserve bills. The bill could also modernize pensions by enabling funds to hold Bitcoin, as a significant portion of Gen Z and Alpha respondents are open to receiving pensions in cryptocurrency.

Arizona's proposal is part of a broader national conversation, with other states like Wyoming and Ohio exploring Bitcoin reserves, encouraged by President Trump's pro-crypto stance. Experts like Adam Back, CEO of Blockstream, suggest federal approval of a Bitcoin reserve could push prices as high as $1 million, while others believe institutional adoption would legitimize Bitcoin as a financial asset.