The state of Arizona’s target for a Bitcoin reserve is closer to reality as the bill overcame the committee stage hurdle.
Arizona is the latest state to join the race to establish a strategic Bitcoin reserve following the Monday, Jan. 27 vote by the Senate Financial Committee to support the Bitcoin reserve bill. Notably, the committee voted 5-2 in favor of the proposal, positioning Arizona ahead of other US states that harbor similar ideas following Donald Trump’s victory for his second term in the White House.
Arizona Dives into Bitcoin Investment
President Trump vowed to unveil a strategic Bitcoin stockpile using the seized crypto asset. The campaign trail promise arose as the GOP candidate then addressed the Bitcoin Conference in July last year.
The pronouncement during the annual event held in Nashville triggered optimism about the US government’s undertaking active BTC purchases, thus bolstering its price. However, it appears the President encountered lobbying by other blockchain representatives to sign an executive order that Thursday, Jan. 23, hinting at the inclusion of other crypto assets.
Despite the recent extended focus beyond Bitcoin, US states are not slowing, as illustrated by the majority vote in the Arizona Senate Financial Committee. The proposal encountered opposition from Senators Epstein Denise and Fernandez Brian, though outnumbered by the pro-bill vote.
The Bitcoin reserve bill is leveraging the far-right support from Senator Wendy Rogers alongside Representative Jeff Weninger. It seeks investment capped at 10% of the public funds in digital assets like Bitcoin. The proposal defines public funds as those held within the retirement systems and treasurer.
The move to vote in favor of the Bitcoin Reserve bill extends the journey of the idea to 25% completion. The proposal faces the Senate Rules Committee, though the actual date is yet to appear. Its approval would set the bill for the entire Senate vote.
In a recent reflection on the US state’s dive into the Bitcoin reserve idea, Satoshi Act Fund co-founder Dennis Porter reports that eleven states have tabled similar legislation. For context, he observed that Texas, Ohio, Oklahoma, Massachusetts, New Hampshire, and Pennsylvania are among the states debating this proposal.
Reserve-Specific Bill
Porter suggests the state’s number could surpass 16 soon as the Bitcoin strategic reserve is now a reality following the heightened lobbying among the industry leaders in the run-up to the US November 5 elections. In state of Arizona the industry emerged a top spender with $5.9M allocation towards supporting the pro-crypto candidates.
Porter illustrates the historic nature of the approval, leaving Arizona as the pioneer state whose Bitcoin reserve-specific bill was advanced via the legislative committee. This milestone is set to encourage other states to proceed with their proposals.
The bill’s full approval in the remaining stages will make Arizona the pioneer state to invest public funds in BTC officially. This could set a new precedent for other states with similar measures.
The SB1025 bill is not the initial attempt for Azirona to integrate BTC into the financial framework. Back in 2022, Senator Rogers proposed to have Bitcoin become legal tender, though the bill failed to garner substantial progress in becoming law.
The current proposal faces several stages before potentially becoming law. Next in line is the Senate Rules Committee review to allow parameters to guide the floor debate and amendments. The legislation requires full Senate approval before moving to the representative’s House for consideration.
Why This Matter
It is worth mentioning that the inclusion of a 10% investment cap portrays a measured approach to incorporating crypto into Arizona investments. The restriction aims to manage potential risks while accommodating meaningful investment in digital assets.
This legislative push by Arizona will leverage the additional momentum tied to the confirmation of Scott Bessent as the US Treasury Secretary. The nominee received bipartisan support, resulting in a 68-29 vote.
The approval adds impetus to the growing crypto interest within the President Trump administration. Bessent supports the Trump administration’s economic policies while sustaining the pro-Bitcoin advocacy.
