Source: Blockchain Knight
On April 28, Arizona's two houses approved a measure in a largely nonpartisan vote, making the state the first state in the country to pass legislation to establish a strategic BTC reserve.
The bill, proposed by Republican Senator Wendy Rogers, authorizes the state treasury to invest part of public funds in BTC.
According to details shared by Dennis Porter, CEO of the Satoshi Action Fund, no members took leave or were absent during the two votes. The bill was passed in the House of Representatives with 29 votes in favor and 25 against, and in the Senate with 31 votes in favor and 25 against, but four members of the Senate did not participate in the vote.
Currently, the bill has been submitted to Governor Katie Hobbs for consideration.
Hobbs has not yet indicated whether she will sign or veto the bill.
However, she recently pledged to veto all bills that reach her desk until the state legislature passes a new budget. While Hobbs has not commented specifically on Senate Bill 1025 (SB1025), she has maintained her broader veto position, which makes the bill's prospects uncertain.
Supporters of the proposal believe that establishing a BTC reserve will help Arizona diversify its assets, protect against inflation, and put the state at the forefront of digital financial innovation.
They point out that BTC has advantages over traditional legal reserve assets due to its fixed supply and decentralization, especially in the context of concerns about national debt and currency devaluation.
At the same time, critics warn that BTC's extremely volatile prices could put state funds at significant financial risk. Some have also expressed concerns about the lack of federal regulation of Crypto assets and questioned whether public funds should be used to invest in speculative assets.
Under the bill, BTC investments will be classified as digital currency holdings in the state's portfolio and will be subject to the oversight and restrictions set forth by Arizona's existing public funds management statutes.
Arizona's move comes amid a broader national discussion on the role of digital assets in public finance. While several state legislatures have debated bills related to Crypto assets in recent years, Arizona is the first state to explicitly authorize the creation of a BTC reserve.
Now, Governor Hobbs will make the final decision on whether Arizona will officially become the first state in the U.S. to incorporate BTC into its fiscal strategy.