The Arizona Senate Finance Committee has approved the Strategic Bitcoin Reserve Act (SB1025) on January 27. The committee passed the bill with a 5-2 vote. It allows up to 10% to be allocated to Bitcoin and other virtual currencies in public funds. Wendy Rogers and Jeff Weninger co-sponsored the legislation that is now moving on to the Senate rules committee. The full Senate is expected to vote on it after that.
Remember that the US President Donald Trump has promised in his election campaign to create a Bitcoin ($BTC) strategic reserve. This move in the Arizona Senate could be the first step of this promise.
Federal Strategic Bitcoin Reserve Requires Treasury Approval
Other provisions of the SB1025 bill address how to store digital assets securely. It suggests setting segregated accounts for potential federal Strategic Bitcoin Reserve holdings. Under this provision, the Secretary of the Treasury must establish such a reserve available to government usage.
The same day Scott Bessent was confirmed to the position of new U.S. Treasury Secretary. His nomination was approved with bipartisan support in a 68-29 vote. Bessent is known to support Bitcoin and is against central bank digital currencies. He has adopted Trump’s economic policies.
The move by Arizona was important, said Dennis Porter, CEO of the Satoshi Action Fund. Arizona became the first state with a Bitcoin reserve bill advancing through a legislative committee, according to him. Additionally, Porter revealed that eleven other states have similar Bitcoin preserve bills.
15 States to Follow Arizona with Bitcoin Reserve Bills
The possibility that SB1025 passes means Arizona could become the first state with public money invested in Bitcoin. However, this step is a big push for state governments in taking on digital assets in a more significant way.
Other states looking at similar legislation are following Arizona’s lead. A further 15 states are said to be about to introduce their own Bitcoin reserve bill.
Next, the bill goes to the Senate Rules Committee. This is the committee will decide the parameters which the debate will take place and possible amendments. The full Senate will approve the bill and the House of Representatives will begin further discussions.
In Arizona, the initiative fits in with growing interest in digital currencies at the state level. This could be the beginning of more states investigating Bitcoin as their financial arsenal.