On January 27, 2025, the Arizona Senate Finance Committee approved a new bill, SB1025, allowing the state to invest up to 10% of public funds in cryptocurrency.
A Groundbreaking Bill
Co-sponsored by Wendy Rogers and Jeff Weninger, SB1025 grants Arizona the ability to invest up to 10% of public funds, including those held by the state treasurer and public retirement systems, in bitcoin and other digital assets. This initiative aims to capitalize on the growing popularity of cryptocurrencies.
Arizona's Push to Pioneer
If SB1025 becomes law, Arizona would be the first U.S. state to officially permit public funds to be invested in bitcoin. This could set a significant precedent for other states. The bill has been approved by the Senate Finance Committee and must now pass through the Senate Rules Committee and receive approval from the full Arizona State Senate before proceeding to the House of Representatives for final approval.
The Role of Federal Support
One of the most interesting aspects of SB1025 is its mention of a potential federal strategic bitcoin reserve. The bill includes provisions to store Arizona's digital assets in this reserve. This idea gained traction following statements by Donald Trump and is supported by current U.S. Treasury Secretary Scott Bessent, known for his opposition to central bank digital currency and support for bitcoin.
Arizona's bitcoin bill is one of eleven similar bills across various states, positioning Arizona as a pioneer in integrating digital currencies into public finance.
