Arizona passes initial step towards the state being able to invest in crypto

Arizona's Senate Finance Committee greenlit the initial step towards the state being able to invest in crypto.

The committee proposed a strategic bitcoin reserve bill that suggested the state's public funds invest in bitcoin and other cryptocurrencies. 

The Arizona Strategic Bitcoin Reserve Act ( SB 1025 ), introduced by Senator Wendy Rogers and Representative Jeff Weninger, was approved by the state committee in a 5 to 2 vote. This is the initial approval step before Arizona sets up a bitcoin reserve.

The proposed legislation will now be submitted to the Senate Rules Committee for floor debate and then sent to the House of Representatives for consideration. If passed, Arizona would become the first state to require public funds to invest in bitcoin.

“A public fund may invest not more than ten percent of the public monies under its control in virtual currency holdings,” the bill said. According to the proposed legislation, public funds include the state treasurer or a retirement system.

The bill also stated that a public fund may store cryptocurrency holdings in a secure, segregated account within the potential bitcoin reserve if the U.S. Treasury Department decides to establish a strategic bitcoin reserve.

Multiple other U.S. states, including Texas, Pennsylvania, Ohio and Oklahoma, have also introduced bills to establish strategic crypto reserves.

The approval coincides with Monday’s confirmation of pro-crypto Scott Bessent as the new U.S. Treasury Secretary, who will reportedly work to set up a federal regulatory framework for digital assets as part of the “Presidential Working Group on Digital Asset Markets.”