Arizona lawmakers have taken a significant step toward investing in Bitcoin. Recently, the Finance Committee approved a new bill, SB 1025, with a 5-2 vote, making Arizona the first state in the United States to take advantage of this opportunity. The bill allows the state to invest up to 10% of its public funds in crypto assets like Bitcoin.
Arizona Forges Toward Strategic Bitcoin Reserve
The Arizona legislation provides crucial details about keeping the approved digital assets safe. Depending on the Secretary of the Treasury’s decisions, it suggests storing them in a separate account linked to a future federal strategic Bitcoin reserve.
The bill, co-sponsored by Senators Wendy Rogers and Jeff Weninger, aims to create a long-term reserve of Bitcoin. The plan is to hold Bitcoin for at least 20 years unless needed to help pay off federal debt. The recent move could put Arizona on the map as a forward-thinking state in the crypto industry, attracting more businesses and investors.
While this move is bullish for the crypto industry, it must undergo several processes before it becomes law. The bill must first receive the green light from the full Senate and then the House of Representatives. If it passes, Arizona could set an example for other states that want to invest in crypto.
Meanwhile, this is not Arizona’s first attempt to embrace Bitcoin. In 2022, Senator Rogers tried to pass a bill to make the asset legal tender, but that effort did not gain much momentum.
Other U.S. States Eye Bitcoin Reserve
Aside from Arizona, other states are also interested in a Bitcoin reserve. Ohio is on the growing list of regions exploring the concept of a Bitcoin reserve. While specific plans have not been announced, Ohio’s interest in creating a Bitcoin reserve is a positive development for the crypto industry.
Texas, on the other hand, is also taking steps to build a Bitcoin reserve. The state is proposing a novel tax payment system in which Bitcoin miners can pay their taxes in Bitcoin. This approach could eventually build up a state Bitcoin reserve.
Meanwhile, in a recent statement, Ripple CEO Brad Garlinghouse addressed allegations that his company was hindering plans for a strategic Bitcoin reserve, categorically denying any involvement in obstruction efforts.
