Key Points
- The Arizona Senate has passed the Strategic Bitcoin Reserve Act, moving it closer to becoming law.
- The legislation allows the state treasurer to invest up to 10% of public funds in cryptocurrencies, including Bitcoin.
Arizona Moves Forward with Bitcoin Reserve Act
The Arizona Strategic Bitcoin Reserve Act has taken a significant step towards becoming law.
On February 27, the Arizona Senate passed the Act (SB 1025), paving the way for it to be debated in the House.
If the House approves it, the bill will then require final approval from the governor before it can become law.
Details of the Strategic Bitcoin Reserve Act
State Senator Wendy Rogers and Representative Jeff Weninger introduced the bill.
It proposes that the state treasurer be allowed to invest up to 10% of public funds in virtual currencies, including Bitcoin.
The bill defines virtual currencies as digital assets that can serve as a medium of exchange, a unit of account, and a store of value, but does not include representations of the U.S. dollar or foreign currencies.
It also proposes the establishment of a Strategic Bitcoin Reserve, with measures for securely storing holdings in segregated accounts.
Furthermore, it would allow Arizona’s public funds to deposit assets into a federal reserve if one is established.
As reported by Bitcoin Laws on February 28, Arizona is the second U.S. state, after Utah, to advance a Bitcoin reserve bill to the final stages of the legislative process.
Similar bills are currently under consideration in 18 U.S. states, according to the Bitcoin Reserve Monitor.
However, Montana, Wyoming, North Dakota, South Dakota, and Pennsylvania have rejected proposed cryptocurrency investment bills.
On the same day, the Arizona Senate also passed SB 1373, the Strategic Digital Assets Reserve bill, in its third reading.
Unlike SB 1025, which focuses on investing public funds in Bitcoin and other virtual currencies, SB 1373 is primarily concerned with managing digital assets seized by the state and funds allocated by the state legislature.
The bill proposes a state treasurer-managed Digital Assets Strategic Reserve Fund that would hold seized cryptocurrencies and state-allocated funds.
