Arizona’s Bitcoin reserve legislation passes Senate Finance Committee

Arizona is moving ahead with a new bill that would make way for the state to establish a strategic Bitcoin reserve.

On January 27, the Arizona State Senate Finance Committee passed the Strategic Bitcoin Reserve Act, advancing it to the Senate Rules Committee where it will undergo final debate and potential amendments before proceeding to the full Senate for approval.

Dubbed SB1025, the bill was introduced by Senator Wendy Rogers and Representative Jeff Weninger on January 14 and has passed the Finance Committee with a 5-2 vote.

If approved by the full Senate, the bill would move to the House of Representatives before it is signed into law.

According to SB1025, Arizona would create a strategic Bitcoin reserve managed by the US Treasury for the storage of government Bitcoin holdings.

The bill defines cryptocurrencies as digital representations of value functioning as a medium of exchange, a unit of account, and a store of value.

It would allow public funds, such as those managed by the State Treasurer, Arizona State Retirement System (ASRS), and the Public Safety Personnel Retirement System (PSPRS), to invest up to 10% of their capital in Bitcoin and other digital assets.

These holdings would be stored in a secure, segregated account within the strategic Bitcoin reserve.

Under existing statutes, the State Treasurer and retirement systems have the authority to allocate and manage investments with a focus on capital safety and returns. SB1025 builds on this framework, allowing these entities to explore virtual currencies as a viable asset class.

Arizona would become the first US state to enact such legislation if the Strategic Bitcoin Reserve Act becomes a reality.

Pundits speculate such a move would lead to a domino effect, prompting other states which are mulling similar initiatives, to accelerate their efforts.

Other Bitcoin reserve bills under consideration 

Currently, at least 13 other states are looking into state-level Bitcoin reserves, an idea that gained prominence with Donald Trump’s victory in the 2024 US elections. 

As a part of his campaign promises, Trump vowed to create a national Bitcoin Reserve and has recently signed an executive order that establishes the Presidential Working Group tasked with evaluating the creation of a strategic national digital assets stockpile.

Wyoming Republican Senator Cynthia Lummis introduced the Federal Reserve Bill in July last year which touts Bitcoin as a means to pay down the US national debt.

It would mandate the government to acquire and hold one million BTC.

State-level strategic reserve bills began surfacing soon after. Pennsylvania became one of the first states to propose such a bill on November 14 just days after elections results were announced.

Ohio State Representative Derek Merrin followed suit by introducing the Ohio Bitcoin Reserve Act in early December, while Texas State Representative Giovanni Capriglione introduced a similar bill for Texas later that same month.

Strategic reserve bills are expected to push the flagship cryptocurrency to new heights, with some experts speculating 2025 highs of over $200,000, while others put the price tag around $500,000.

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