Arizona Passes Bitcoin Reserve Bill, Opening a New Era of Public Fund Investment

On April 28 local time, the Arizona legislative body took a historic step as two key bills were passed by the House of Representatives, aimed at establishing Bitcoin and digital asset reserves for the state. This news quickly stirred the financial and cryptocurrency markets, with Bitcoin prices rising in response, indicating a positive reaction from the market to this innovative initiative.

The two bills are Senate Bill 1025 (SB1025) and Senate Bill 1373 (SB1373). SB1025 amends existing regulations to allow for the establishment of a strategic Bitcoin reserve, passing with 31 votes in favor and 25 against; SB1373 aims to create a state-level digital asset reserve, passing smoothly with 37 votes in favor and 19 against. Once both bills are signed by Governor Katie Hobbs, Arizona will become the first state in the U.S. to officially establish a Bitcoin reserve, leading the way in cryptocurrency legislation and diversification of public fund investments.

SB1025 allows the Arizona State Treasurer to allocate up to 10% of public funds to virtual currencies like Bitcoin, opening new investment channels for state finances and pension systems. SB1373 authorizes the use of seized crypto assets and future appropriations to establish reserves, incorporating on-chain auditability and standard risk controls to ensure the security and transparency of the digital asset reserves.

Arizona State Representative Jeff Weninger commented on the SB1025 bill, stating: "This bill essentially adopts the approach being considered by about 15 other states, allowing financial officials to invest up to 10% of funds in Bitcoin and other assets." This indicates that Arizona's initiative is not an isolated phenomenon, but rather reflects a shift in attitudes towards digital assets across U.S. states and an active exploration of innovative investment strategies.