Lawmakers in the US state of Arizona have proposed a bill to allow public funds to invest in Bitcoin and other digital assets. The state Senate Finance Committee approved the bill on January 27 with a 5 to 2 vote.
Arizona Greenlights Strategic Bitcoin Reserve Bill
The proposed legislation, which is co-sponsored by Wendy Rogers and Jeff Weninger, is called SB1025, the “Arizona Strategic Bitcoin Reserve Act,” and would allow the state to invest up to 10% of public funds, including funds held by the state treasurer and retirement systems, in cryptocurrencies such as Bitcoin. If the US Treasury Secretary establishes a strategic Bitcoin reserve for government assets, the bill lays down provisions for holding digital assets in a secure segregated account within a potential federal strategic Bitcoin reserve.
If this bill legalizes, Arizona would be the first US state to officially invest public funds in Bitcoin.
This move comes at a time when more states are exploring the potential of Bitcoin as a financial asset. Dennis Porter, CEO of the Satoshi Action Fund, highlighted that Arizona would be the first state to have such a bill pass through a legislative committee. He also pointed out the financial benefits of creating a Strategic Bitcoin Reserve, such as protecting state purchasing power and potentially reducing the need for program cuts or tax hikes.
The bill now proceeds to the Senate Rules Committee, where it will be reviewed for further amendments and floor debate before moving on to the full Senate. If approved there, it will then proceed to the House of Representatives. Notably, Porter had previously mentioned that up to 20 ‘Strategic Bitcoin Reserve’ bills will be introduced at the state level and there may even be multiple bills in the same state. As of today, eleven US states have introduced Bitcoin reserve bills.
Also Read: Ripple CEO Urges Diversified US Crypto Reserve Over Only One Crypto Approach
Credit: Source link