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Arizona Makes History with Strategic Bitcoin Reserve Bill

A Bold Move That Could Change State Finance Forever

January 28, 2025

Arizona made history on January 27, 2025, by becoming the first U.S. state to pass a Strategic Bitcoin Reserve bill through a legislative committee. The Arizona Senate Finance Committee approved the bill, SB1025, also called the "Arizona Strategic Bitcoin Reserve Act," with a vote of 5 to 2.

Co-sponsored by State Senator Wendy Rogers and State Representative Jeff Weninger, the bill would allow up to 10% of public funds, such as those managed by the state treasurer and retirement systems, to be invested in cryptocurrencies like Bitcoin. If the bill becomes law, Arizona would be the first state to officially invest public funds in Bitcoin.

The legislation also includes a provision to secure Arizona's digital assets in a federal reserve account, should the U.S. Treasury establish a national Bitcoin reserve. This bold move positions Arizona at the forefront of digital currency adoption, while many other states are still debating the risks and benefits.

Dennis Porter, CEO of the Satoshi Action Fund, praised the initiative, saying it could help protect the state’s purchasing power and reduce the need for tax increases or program cuts. The bill will now move to the Senate Rules Committee for further review, before potentially advancing to the full Senate and the House of Representatives.

This groundbreaking step reflects a growing trend across the U.S., with at least eleven other states exploring similar Bitcoin reserve bills. Arizona’s decision could inspire others to integrate bitcoin into their financial strategies.

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