Arizona’s Pioneering Steps Towards Establishing a Strategic Bitcoin Reserve
In a significant move, Arizona is advancing its efforts to create government-held Bitcoin reserves. On March 24, two pivotal Strategic Bitcoin Reserve (SBR) bills successfully passed through the Arizona House Rules Committee, marking a noteworthy moment in the state’s legislative history. These bills, namely Senate Bill 1373 (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025), are now set to be deliberated upon by the entire House of Representatives.
The Legislative Journey of Arizona’s SBR Bills
The watchdog account Bitcoin Laws (@Bitcoin_Laws) shared crucial news via X, announcing that the House Rules Committee had approved the bills, declaring them “constitutional and in proper form.” This advancement paves the way for a full floor vote, a critical step in the legislative process.
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Despite the progress, there remains a potential challenge in the form of Governor Katie Hobbs. Known for her tendency to veto Republican-backed legislation, her stance could play a decisive role. In 2024, Hobbs vetoed approximately 22% of all bills, a rate unmatched by any other governor in the nation. Given her track record, there is speculation about whether she will support these bills should they pass both legislative chambers.
Details of the Strategic Bitcoin Reserve Bills
Senate Bill 1373 (Strategic Digital Assets Reserve Bill) proposes the creation of a digital assets reserve. This reserve would be funded primarily by digital assets seized in criminal proceedings, with the state treasurer managing it. The bill allows for investing up to 10% of the reserve’s total value annually, with the possibility of asset loans to enhance returns, provided that such actions do not heighten financial risk.
Senate Bill 1025 (Arizona Strategic Bitcoin Reserve Act) emphasizes Bitcoin investments. It grants the Arizona Treasury and the state’s retirement system the authority to invest up to 10% of available funds in Bitcoin. Furthermore, the bill outlines provisions for securely storing Bitcoin holdings in a segregated account within a federal reserve, should such a facility be established in the future.
Arizona Leading the Charge in the State Reserve Race
With these bills moving forward, Arizona is at the forefront of a burgeoning national effort to integrate Bitcoin into state strategic reserves. The developments are not isolated to Arizona alone. On the same day, the Oklahoma House of Representatives passed HB 1203 with a 77–15 vote, positioning itself alongside Texas in the state reserve race. Texas recently saw its Senate approve SB 21, a similar bill, with subsequent discussions on capping the reserve at $250 million.
Additionally, Utah has made significant strides, having passed similar legislation through one chamber. As noted by Bitcoin Laws, these states—Oklahoma, Texas, Arizona, and Utah—are emerging as pioneers in this legislative arena.
At the time of reporting, Bitcoin’s market price stood at $86,452, highlighting the growing interest and importance of such legislative measures.
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