Arizona Senate Approves Bitcoin Reserve Bills

Arizona has taken a significant step towards embracing Bitcoin, with the state Senate passing two bills that could see the cryptocurrency included in government reserves. Meanwhile, other states such as Wyoming and Montana have rejected similar proposals, citing concerns about risk.

The Arizona Senate approved two bills on February 27. The first, SB 1373, establishes a Digital Assets Strategic Reserve Fund, which would be managed by the state treasurer and include state-appropriated money and seized digital assets. The bill caps crypto investments at 10% of total deposits per fiscal year and allows for loans of holdings to generate returns, provided there is no extra financial risk.

The second bill, SB 1025, goes even further. Co-sponsored by Senator Wendy Rogers and Representative Jeff Weninger, it allows public funds to be invested in Bitcoin and other cryptocurrencies. This means Arizona could actively buy and invest in Bitcoin, not just hold onto seized assets. Both bills now await the House of Representatives' final decision. If passed, Arizona could become the first U.S. state to formally hold Bitcoin in its reserves.

While Arizona is moving forward, Wyoming and Montana have taken a different stance. Lawmakers in these states have rejected similar proposals, arguing that Bitcoin's price volatility makes it too risky for state finances. This split reflects the broader national debate over Bitcoin's role in government, with some states like Utah warming up to the idea while others remain cautious. Eighteen states are still waiting for their own Bitcoin reserve proposals to progress.

Crypto advocate Dennis Porter, founder of Satoshi Action Fund, believes that federal regulations are on the horizon. He predicts that stablecoins, market structures, and Bitcoin reserves will be addressed in that order. For now, individual states are left to decide their position on the matter.

Arizona's push for Bitcoin reserves comes at a time when the market is facing challenges. Bitcoin recently dropped below $80,000 and could slide further to $70,000-$75,000, according to analysts. It has already fallen by 17% this week, with Trump's tariff policies not helping investor confidence. Despite the market dip, Bitcoin enthusiasts like Michael Saylor remain optimistic. In response to the market decline, Saylor joked, "Sell a kidney if you must, but keep the Bitcoin." However, some see the latest drop