Emily Walker
Arizona has moved forward with Senate Bill 1025, known as the “Arizona Strategic Bitcoin Reserve (SBR) Act,” which aims to make it the first US state to allow investment of state funds in Bitcoin.
Dennis Porter, CEO of the Satoshi Act Fund, announced this milestone on X, stating: “BREAKING: Arizona is the first state to pass out of committee a bill for a ‘Strategic Bitcoin Reserve’. The Senate will soon vote on it. Kudos to co-sponsors Wendy Rogers and Jeff Weninger for their efforts.”
Arizona at the Forefront of Bitcoin Adoption
This proposed legislation authorizes a “public fund,” which includes the State Treasurer or a state retirement fund, to invest up to 10% of its assets in cryptocurrencies like Bitcoin. The bill’s text specifies:
“A public fund may invest up to ten percent of the public funds it controls in virtual currency holdings… If the US Secretary of the Treasury sets up a strategic Bitcoin reserve, a public fund can store its virtual currency in that secure account.”
It defines “virtual currency” as a digital asset that acts as a medium of exchange, unit of account, and store of value, not tied to the US dollar or other foreign currencies. Furthermore, if federal authorities establish a strategic reserve, the state might use that for holding its Bitcoin.
The Arizona general fund manages approximately $28 billion, while the state retirement fund has $50 billion. Under the bill, each fund can invest 10% of its assets in Bitcoin, representing a potential influx of billions into digital currencies. Importantly, while the bill sets a 10% cap, it doesn’t require that amount to be invested in Bitcoin.
Porter noted that eleven states have introduced Bitcoin reserve bills, with at least 15 to 16 more planning similar measures.
The Satoshi Action Fund expressed enthusiasm over recent legislative progress, stating through X: “We’re excited about the developments in introducing key legislation, marking an essential step in our efforts. Nevertheless, this is just the start. To effect real change, we need to focus on passing these SBR bills into law to create actionable policies for a robust financial future for all Americans.”
Having emerged from committee, SB 1025 will proceed to a full Senate vote. If it passes, it will then be sent to the House of Representatives. As of now, no specific date for the Senate vote has been provided.
Currently, Bitcoin is trading at $102,970.