Arizona joins U.S. states in establishing strategic Bitcoin reserve
Arizona joins U.S. states in establishing strategic Bitcoin reserve
On Jan. 27, Arizona’s Senate Finance Committee approved a bill that would allow public funds to be invested in Bitcoin.
The bill, known as the Arizona Strategic Bitcoin Reserve Act (SB1025), passed with a 5-2 vote. It authorizes the Secretary of the Treasury to establish a strategic Bitcoin reserve for government holdings, permitting the state to invest up to 10% of public funds in Bitcoin.
This initiative aligns Arizona with states like Texas, Wyoming, New Hampshire, and others exploring Bitcoin as part of their financial strategy.
Pennsylvania and Florida
In November 2024, Pennsylvania became one of the first states to propose the Bitcoin Strategic Reserve Act. This legislation would allow the state to invest up to 10% of its $7 billion Rainy Day Fund and $9.7 billion General Fund in Bitcoin, signaling a significant commitment to integrating digital assets into its financial framework.
Florida is gearing up to join the Bitcoin reserve race by the first quarter of 2025. With strong support from Governor Ron DeSantis, as well as state leaders like House Speaker Danny Perez and Senate President Ben Albritton, Florida is well-positioned to adopt Bitcoin as a reserve asset. Samuel Armes, head of the Florida Blockchain Business Association, highlighted the state’s readiness to lead in cryptocurrency adoption.
Texas, Ohio, and Wyoming
Texas introduced Senate Bill 778 in December 2024 to create a Bitcoin reserve separate from its general revenue fund. Residents would even be able to donate Bitcoin to the state.
Ohio proposed the Bitcoin Reserve Act, giving the state treasurer authority to purchase Bitcoin at any time, further solidifying the state's crypto-friendly stance.
Wyoming continues its conservative approach, proposing to allocate 3% of public funds to Bitcoin through a bill filed by five Republican senators.
North Dakota and New Hampshire
On January 10, legislators in North Dakota proposed a resolution to allocate state funds to digital assets. While the resolution doesn’t explicitly name Bitcoin as the sole asset, it suggests policymakers are considering a broader digital asset strategy.
New Hampshire: On the same day, state representative Keith Ammon introduced a bill authorizing the state treasury to invest in Bitcoin. The bill sets stringent market value requirements that currently make Bitcoin the only eligible cryptocurrency and permits lending and staking activities.
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Oklahoma, Massachusetts, and Utah
On January 15, Oklahoma introduced House Bill 1203, the Strategic Bitcoin Reserve Act. Unlike other states focusing exclusively on Bitcoin, this bill allows the state to invest in Bitcoin and other digital assets with a market cap exceeding $500 million.
Massachusetts: On January 18, state senator Peter Durant proposed a bill to create a strategic Bitcoin reserve. The legislation would enable the state to invest up to 10% of its rainy-day fund in Bitcoin or similar digital assets.
On January 21, Utah announced a bill to allocate 10% of state funds to Bitcoin and stablecoins. The bill includes provisions for staking, lending, and enhanced security measures, reflecting Utah’s innovative approach to cryptocurrency.
Why Bitcoin reserves matter
The growing trend of U.S. states establishing Bitcoin reserves reflects increasing recognition of cryptocurrency’s potential to diversify financial portfolios and hedge against inflation. Arizona’s entry into this movement underscores its ambition to stay at the forefront of blockchain innovation, joining a rapidly expanding list of states embracing the future of decentralized finance. With initiatives across the country gaining momentum, Bitcoin’s role in state-level financial strategies is becoming undeniable.
