Arizona Senate greenlights Bitcoin Reserve Bill – Is the state leading U.S. crypto adoption?

• Arizona advances the bill to create a Strategic Bitcoin Reserve, allowing public funds in crypto.
• Trump’s digital asset push fuels debate, but market sentiment remains skeptical at 16%.

The growing adoption of cryptocurrencies continues to reshape financial policies across the United States, with Arizona emerging as a key player.

As discussions surrounding a Strategic Bitcoin [BTC] Reserve gain momentum, multiple states, including Texas, Oklahoma, Wyoming, and Massachusetts, have already engaged in preliminary talks.

Arizona’s bold Bitcoin move

Arizona, however, has taken a decisive step forward, advancing a bill that could position it as the first U.S. state to invest public funds in BTC and other digital assets.

If enacted, this legislation would allow up to 10% of public funds to be allocated to virtual currencies, marking a significant shift in how states manage their financial reserves.

That being said, the Strategic Bitcoin Reserve Act (SB1025), co-sponsored by Senator Wendy Rogers and Representative Jeff Weninger, has already cleared a major hurdle by passing the Arizona State Senate Finance Committee with a five-to-two vote on 27th January.

The bill now awaits review by the Senate Rules Committee before moving to the House of Representatives for further deliberation. 

Notably, this legislation could also pave the way for pension funds to allocate resources to BTC, aligning with shifting generational preferences.

Execs weighing in

Thus, Arizona inches closer to becoming the first state to officially invest public funds in Bitcoin.

Inasmuch, experts like Andy Lian believe this move could trigger a domino effect, encouraging other states to follow suit in integrating digital assets into their financial policies.

Remarking on the same, Dennis Porter, CEO and co-founder of the Satoshi Action Fund, said,

“I can confirm that Arizona has become the 1st state in the nation to pass out of committee a bill to create a ‘Strategic Bitcoin Reserve’,” 

In a separate tweet, he had earlier hinted, 

“I can confirm that at least 15 states will introduce ‘Strategic Bitcoin Reserve’ legislation. Maybe even 16. As a reminder, only 3 months ago this number was zero.” 

Other developments

This development aligns with President Donald Trump’s recent executive order directing the creation of a digital asset reserve, signaling a broader federal push toward blockchain integration.

Additionally, the confirmation of Scott Bessent as the 79th Treasury Secretary marks a pivotal moment in the nation’s financial policy, with potential implications for digital assets.

However, despite growing optimism, market sentiment remains divided.

Polymarket data on the question, “Will Trump create a Bitcoin reserve in his first 100 days?” currently reflects only a 16% probability, down from 21% the previous day, highlighting persistent skepticism among bettors.

Impact on Bitcoin

However, if approved, the potential nationwide approval of a U.S. Bitcoin reserve could have far-reaching implications for the crypto market.

Industry experts, including Adam Back, co-founder and CEO of Blockstream, believe this move could drive BTC’s price beyond the seven-figure mark within this cycle.

As expected, he put it best when he said,

“If the US Strategic Bitcoin Reserve happens prepare for 7 figure bitcoin. this cycle. the market is skeptical on meaningful follow through for now, so that is not at all priced in.”