Arizona Lawmakers Pass Strategic Bitcoin Reserve Act
Arizona lawmakers have approved the Strategic Bitcoin Reserve Act (S.B. 1025) with a 31-25 vote, allowing the state treasurer and retirement system to invest up to 10% of available funds in cryptocurrency. The bill, which passed on Monday, now awaits Governor Katie Hobbs’ approval. However, Hobbs has recently pledged to veto all bills until a disability funding bill is passed, raising doubts about the fate of this legislation.
The bill focuses solely on Bitcoin as an investment asset and outlines how public funds from the state treasury and pensions will be managed. If the U.S. Secretary of the Treasury establishes a Bitcoin reserve, Arizona may store its crypto holdings in a secure, segregated account within the Strategic Bitcoin Reserve.
The legislation, co-sponsored by Republican lawmakers Sen. Wendy Rogers and Rep. Jeff Weninger, would make Arizona the first U.S. state to fully integrate cryptocurrency into its financial system if enacted.
Other states, including Utah, Texas, and New Hampshire, have explored similar legislation. Texas passed its Bitcoin reserve bill on March 6, while Kentucky Governor Andy Beshear recently signed House Bill 701, the “Bitcoin Rights” bill, into law. Additionally, Missouri is considering establishing its own strategic Bitcoin reserve.
The growing trend of states integrating Bitcoin into their financial systems highlights the increasing acceptance of digital assets and could shape the future of blockchain regulation across the U.S