Arizona has introduced a bill from the Senate committee to establish a Strategic Bitcoin Reserve Fund. If passed, this law will allow up to 10% of public funds to be allocated to cryptocurrencies like Bitcoin.
If enacted, Arizona will become the first state to officially invest public funds in Bitcoin and other digital assets.
Arizona Moves Closer to Strategic Bitcoin Reserve
The state of Arizona is on track to become the first state in the country to officially invest public funds in cryptocurrencies. On 01/27, the state's Senate Finance Committee approved the "Strategic Bitcoin Reserve Fund" (SB1025) bill with a 5-2 vote.
"I can confirm that Arizona has become the first state in the country to pass a committee bill to create a 'Strategic Bitcoin Reserve Fund',"
Dennis Porter, CEO and co-founder of Satoshi Action Fund, posted on X.
State Senators Wendy Rogers and Jeff Weninger co-sponsored this bill.
"A public fund may invest no more than ten percent of the monies under its control in holdings of virtual currency. This action may be called the 'Arizona Strategic Bitcoin Reserve Fund Act of 2024',"
the bill states.
The bill is now being transferred to the Senate Rules Committee for further consideration. If approved, it will be sent to the Arizona House for additional discussion. If the bill is passed in both chambers, it could set a precedent for the future of public cryptocurrency investments by becoming the first state to create an SBR.
This move follows an executive order signed by President Donald Trump last week. The order directs the establishment of a digital asset reserve fund. Notably, if the Treasury Secretary creates a Strategic Bitcoin Reserve Fund for government holdings, the bill also includes provisions to store digital asset holdings in a secure, segregated account within this reserve fund.
Arizona's decision to pursue a Bitcoin reserve fund bill adds to the growing list of U.S. states exploring cryptocurrency investments. Oklahoma, Texas, Massachusetts, and Wyoming have introduced similar bills. Additionally, Utah has proposed legislation to invest public funds in digital assets.
Furthermore, this news comes as Scott Bessent is confirmed as the U.S. Treasury Secretary. The Senate confirmed Bessent, Trump's pick, with bipartisan support in a 68-29 vote. Bessent is a hedge fund billionaire and a prominent supporter of digital assets.
Ripple CEO Brad Garlinghouse took to X to congratulate Bessent on joining Trump's cabinet. Garlinghouse expressed confidence in Bessent's ability to lead with policies that will support the development of cryptocurrency technology and markets.
"I believe he will pursue sensible economic policies, working with the Administration and Congress to advance U.S. crypto technology and innovation,"
Garlinghouse wrote on X.
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