Arizona legislature passes Bitcoin reserve bill, Governor approval pending
Arizona became the first state in the nation to pass legislation creating a Strategic Bitcoin Reserve after both chambers of the legislature approved the measure in votes that broke largely along party lines on April 28.
The legislation, sponsored by Republican Senator Wendy Rogers, authorizes the state treasury to invest a portion of public funds in Bitcoin (BTC).
According to details shared by Satoshi Action Fund CEO Dennis Porter, no members were excused or absent during either vote. The bill passed the House 29-25 and the Senate 31-25, with four lawmakers not voting in the Senate.
The bill now heads to Governor Katie Hobbs for consideration. Hobbs has not yet indicated whether she will sign or veto the measure.
However, she recently pledged to veto all bills sent to her desk until the state legislature passes a new budget. Hobbs has not commented specifically on SB1025 but has remained firm in her broader veto stance, throwing uncertainty over the bills prospects.
Backers of the proposal argue that establishing a Bitcoin reserve could help Arizona diversify its assets, hedge against inflation, and position the state at the forefront of digital financial innovation.
They point to Bitcoins fixed supply and decentralized nature as advantages over traditional fiat reserves, particularly amid concerns over national debt and currency devaluation.
Meanwhile, critics have warned that Bitcoins extreme price volatility could expose state funds to significant financial risk. Some also voiced concerns about the lack of federal regulation surrounding crypto and questioned whether public monies should be used to invest in speculative assets.
Under the bills language, Bitcoin investments would be categorized as digital currency holdings in the states investment portfolio, subject to oversight and limits defined by Arizonas existing public fund management regulations.
The Arizona initiative comes amid a broader national conversation about the role of digital assets in public finance. While several state legislatures have debated cryptocurrency-related measures in recent years, Arizonas is the first to authorize a Bitcoin reserve explicitly.
Governor Hobbs will now make the final decision, determining whether Arizona will become the first US state to integrate Bitcoin into its fiscal strategy officially.
The post Arizona legislature passes Bitcoin reserve bill, Governor approval pending appeared first on CryptoSlate.
Read more: https://cryptoslate.com/arizona-legislature-passes-bitcoin-reserve-bill-governor-approval-pending/
Text source: CryptoSlate
