Arizona Senate Finance Approves Bill to Invest Public Funds in Bitcoin

• On January 27, the Arizona Senate Finance Committee approved a bill that would permit public funds to be invested in Bitcoin and other digital assets, with a 5 to 2 vote.
• If approved, the bill introduced by Senator Wendy Rogers and Representative Jeff Weninger will make Arizona the first state in the U.S. to allow the investment of public funds in BTC.

As global interest in Bitcoin (BTC) as a safe haven against inflation and a portfolio diversifier continues to grow, Arizona is positioning itself at the forefront of this trend. Recently, Senator Wendy Rogers and Representative Jeff Weninger advanced a bill that would allow the state to invest in Bitcoin and establish a strategic reserve of the cryptocurrency. The bill, known as SB 1025, has made significant progress, being approved by the Senate Finance Committee on Monday. It now moves to the Senate Rules Committee and could soon be up for a vote in the Arizona State Senate.

If passed, the bill will allow the state of Arizona to invest up to 10% of public funds in cryptocurrencies and include provisions to store digital assets in a Federal strategic reserve, should the U.S. Treasury choose to create one under President Donald Trump’s administration. If this is successfully implemented,  Arizona will be the first state in the U.S. to approve the investment of public funds in Bitcoin. 

Senator Wendy Rogers has long been a supporter of Bitcoin. In 2022, she introduced a bill proposing Bitcoin to be made legal tender in Arizona, though at that time, it did not receive any support. 

Dennis Porter, CEO and co-founder of the Satoshi Action Fund, stated on an X post that Arizona is the first state to have a Bitcoin reserve bill approved by a legislative committee. Porter also mentioned that as of January 27, 2025, eleven states have introduced their own Bitcoin reserve bills, with at least 15 states expected to follow suit.

BIG BREAKING: 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’.

The bill will soon move to a floor vote in the Senate. Congrats to co-sponsors @WendyRogersAZ and @JeffWeninger for their… pic.twitter.com/nUjt5HccbZ

— Dennis Porter (@Dennis_Porter_) January 27, 2025

Arizona’s SB 1025 bill could pave the way for further state-level adoption of Bitcoin, cementing its role in the ongoing conversation about cryptocurrency’s future in mainstream finance.

Building a U.S. Strategic Reserve

Last week, the 47th president of the US, Donald Trump, signed an executive order aimed at establishing a regulatory framework for cryptocurrency in the U.S. while also seeking to set up a digital asset reserve. In a strategic move following this executive action, Senator Cynthia Lummis of Wyoming was appointed as the leader of the new subcommittee on digital assets by the chair of the US Senate Banking Committee, Tim Scott. Later on, Lummis announced the 8 members of the Senate Banking Subcommittee on Digital Assets for the 119th Congress include Tennessee Senator Bill Hagerty, Pennsylvania Senator Dave McCormick, Ohio Senator Bernie Moreno, and Arizona Senator Ruben Gallego, among others.

The efforts of the Lummis-led team align with Trump’s goal of establishing a strategic reserve, which is seen as a crucial approach to tackling the U.S. national debt, currently exceeding $36 trillion. However, Trump’s executive order notably did not mention Bitcoin, raising some uncertainty about the feasibility of a Bitcoin reserve. 

This momentum in the cryptocurrency space coincides with MicroStrategy’s recent move to file a Form S-3 with the SEC on January 27, detailing its new strategy to expand its Bitcoin holdings while addressing its broader corporate needs. MicroStrategy is one of the largest Bitcoin holders globally, holding over 470,000 BTC. Currently, BTC is trading at $102,820, reflecting a 4.71% increase over the past 24 hours and an increase of 61.20% in its trading volume.

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