Arizona Senate committee advances Bitcoin reserve bill

The Arizona Senate Finance Committee has approved SB1025, also known as the “Arizona Strategic Bitcoin Reserve Act.”

The Act was approved in a 5-2 vote. Co-sponsored by State Senator Wendy Rogers and Representative Jeff Weninger, the bill seeks to allow up to 10% of Arizona’s public funds, including state treasurer and retirement system reserves, to be invested in Bitcoin ( BTC ) and other digital assets.

The bill will now proceed to the Senate Rules Committee, which will establish guidelines for debate and potential amendments on the Senate floor. If approved by the full Senate, the bill will advance to the Arizona House of Representatives.

If passed into law, Arizona would become the first U.S. state to incorporate Bitcoin into its financial strategy. The proposed legislation includes measures for securely storing government Bitcoin holdings in segregated accounts, ensuring these digital assets are managed responsibly.

Federal Strategic Bitcoin Reserve

The legislation also supports the potential creation of a federal Strategic Bitcoin Reserve, which could store state-held cryptocurrency assets.

Dennis Porter, CEO of the Satoshi Action Fund, highlighted that Arizona’s move is part of a broader trend, with eleven states already introducing similar Bitcoin reserve bills. 

The advancement of the bill aligns with recent developments in cryptocurrency policy at the federal level. The U.S. Senate recently confirmed Scott Bessent as Treasury Secretary, with Bessent voicing support for Bitcoin while opposing central bank digital currencies. 

Last year, The Arizona State Senate approved a bill urging state retirement systems to monitor Bitcoin ETFs as potential investment options. The bill emphasized working with SEC-approved firms before making any portfolio additions.