Table of Contents
Arizona’s Ambitious Move towards a Strategic Bitcoin Reserve
Pending approval from Governor Katie Hobbs, Arizona is poised to become the first state to establish a strategic Bitcoin reserve, following the recent passage of two significant House bills.
The House voted narrowly, with Senate Bill 1025 (SB1025) advancing with 31 votes in favour and 25 against. Another initiative, Bill SB1373, which aims to create a state-level digital assets reserve encompassing Bitcoin and other cryptocurrencies, passed with 37 votes in favour and 19 against.
Multi-State Interest in Bitcoin Investment
State Representative Jeff Weninger reported that 15 additional states are contemplating similar legislative measures that would permit state treasurers to allocate up to 10% of their holdings into cryptocurrencies, primarily Bitcoin. Although initiatives are circulating at the state level, Arizona’s future remains uncertain as Governor Hobbs has expressed potential reservations about such legislation reaching her office. In a tweet, she indicated, “Any bill not already on my desk will be vetoed until we have a serious, bipartisan funding solution that protects health care for Arizonans with disabilities.”
Earlier this month, Oklahoma’s Senate Revenue and Taxation Committee rejected a proposal to establish a Bitcoin reserve, ending in a close 6-5 vote. This setback adds to the list of states, including Wyoming, Montana, South and North Dakota, and Pennsylvania, which have faced hurdles in adopting similar proposals.
Federal Perspectives: Trump’s Executive Order
In a broader context, former President Donald Trump signed an executive order on March 6 aimed at exploring the establishment of a federal Strategic Bitcoin Reserve. However, the order fell short of detailing how Bitcoin would be integrated into any reserve, mandating that government entities identify “budget-neutral” options.
Meanwhile, MicroStrategy, a company often viewed as a benchmark for corporate Bitcoin reserves under the leadership of Michael Saylor, has continued its buying spree. Recently, the company added 15,355 BTC to its holdings, bringing its total to 553,555 BTC, valued at around US$52.3 billion (approximately AU$81.5 billion).
Summary
Arizona could soon lead the way as the first state to implement a strategic Bitcoin reserve if Governor Hobbs approves two recently passed bills. With interest from 15 other states in similar legislation, the future of Bitcoin investment at the state level is under discussion. However, multiple states face legislative challenges, and prospects at the federal level remain undefined following Trump’s executive order. Amidst these developments, MicroStrategy strengthens its position in the cryptocurrency market by increasing its Bitcoin holdings.
