On January 27, 2025, Arizona’s Senate Finance Committee made a big move and approved a bill that can change how the state manages its cash. The “Arizona Strategic Bitcoin Reserve Act” (SB1025), requires the state to allocate up to 10% of public funds into Bitcoin as well as Ethereum and other digital currency. This is a big step for Arizona, as it would be the first state in the U.S. to officially invest in bitcoin using public funds.
The bill, sponsored by Senators Wendy Rogers and Jeff Weninger, passed with a 5-2 vote. This will enable the state to invest in Bitcoin, from money managed by the state treasurer to retirement systems, but this proposal comes with two important caveats. If the bill makes it through, Arizona would gain the ability to safely store its digital assets, which may be put into a U.S. Treasury Secretary directed Strategic Bitcoin Reserve, if created.
This step is part of the bigger picture, as states are starting to look at digital assets like Bitcoin to diversify their finances. The law would be the first of its kind in any state, creating a Bitcoin reserve. Eleven other states have proposed similar bills, already in Texas and Wyoming, and others could too.
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BIG BREAKING: I can confirm that Arizona has become the 1st state in the nation to pass out of committee a bill to create a 'Strategic Bitcoin Reserve'.
— Dennis Porter (@Dennis_Porter_) January 27, 2025
The bill will soon move to a floor vote in the Senate. Congrats to co-sponsors @WendyRogersAZ and @JeffWeninger for their… pic.twitter.com/nUjt5HccbZ
The full Senate is still to debate and the bill will be scrutinized by the Senate Rules Committee before that happens. It will then go to the House of Representatives for more discussion, if it passes there.
The move comes as Scott Bessent confirmed as the new U.S. Treasury Secretary who supports digital currencies. However, such a move from Arizona might inspire other states on how public funds can be managed using cryptocurrency, such as Bitcoin. This move follows the executive order signed by President Trump recently.
Also read: What Does Trump’s Executive Order Means for Solana’s Growth?
