Arizona’s Pioneering Move in the US Strategic Bitcoin Reserve Race
Arizona has surged ahead in the race to establish a US Strategic Bitcoin Reserve (SBR), following the successful passage of two significant bills by the House of Representatives Commerce Committee on March 18. These developments position Arizona at the forefront of cryptocurrency legislation with active crypto reserve bills and a legal tender bill progressing to the next legislative phase.
Arizona’s House Commerce Committee Approves Bitcoin Reserve Legislation
On a recent Tuesday, Arizona’s House Commerce Committee convened to deliberate on three pivotal Bitcoin-related bills, including two focused on establishing a strategic reserve. These bills successfully advanced to the subsequent legislative stages. The first, Senate Bill 1025 (SB1025), known as the “Arizona Strategic Bitcoin Reserve Act,” passed with a 6-4 majority, reflecting a partisan divide with Republican support.
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Should SB1025 become law, it would authorize Arizona’s public funds, such as the state treasurer and retirement systems, to invest up to 10% of their assets in cryptocurrencies, primarily Bitcoin (BTC). The bill outlines that if the US Secretary of the Treasury sets up a strategic Bitcoin reserve for governmental holdings, Arizona’s public funds may secure their virtual currency in a segregated account within this reserve.
Senate Bill 1373 (SB1373), sponsored by Republican Senator Mark Finchem, also passed with a 6-4 vote. This legislation proposes the creation of a Digital Assets Strategic Reserve Fund, incorporating seized cryptocurrencies and allocated legislative funds. The fund would be managed by the state treasurer, who could invest up to 10% of its deposits and potentially loan assets to generate returns, without heightening financial risks for the state.
The bill specifies stringent security protocols for custody solutions, including exclusive key access, encrypted environments, and comprehensive security measures such as multi-party governance and regular audits.
Arizona’s Leadership in the Strategic Bitcoin Reserve Initiative
With Utah withdrawing its BTC reserve proposal, Arizona now leads with the most advanced SBR legislation. Recent reports indicate Utah’s State Senate exited the SBR competition after modifying a bill concerning digital asset investments by the state treasury.
Arizona’s progress includes two reserve bills pending a decisive floor vote in the Senate, set to move to the House Commerce Committee. These bills, SB1015 and SB1373, await the House Rules Committee’s approval, which holds a Republican majority. Success here would advance them to a full House vote, the final step before reaching the governor’s desk.
Concurrently, another Bitcoin-related bill, Senate Bill 1062 (SB1062), sponsored by Senator Mark Finchem, secured a 6-4 vote in the House Commerce Committee. This bill seeks to redefine legal tender in Arizona to include cryptocurrencies like Bitcoin, alongside traditional currencies. It also proposes updates to Arizona’s tax code to integrate this new definition, signaling an acknowledgment of the cryptocurrency industry’s growing significance.
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