The Arizona House of Representatives’ Commerce Committee has approved the Bitcoin Reserve Bill SB1373 with a narrow vote of 6-to-4, resulting in a modest 1.36% price increase in the past 24 hours, CoinMarketCap data shows.
This vote marks a significant step forward in Arizona’s efforts to integrate cryptocurrency into its financial framework, in line with the State’s growing interest in the management of digital assets.
The bill, initially introduced in the Senate, has moved through the legislative process relatively quickly. It reached this key stage in the House after passing its third reading in the Senate with a 17-12 vote on February 27.
Sponsored by Republican Senator Mark Finchem, SB1373 aims to establish a “Digital Assets Strategic Reserve Fund” to be managed by the state treasurer. This fund would consist of money allocated by the legislature, along with any cryptocurrency assets seized by the state.
Notably, the bill includes safeguards to limit investment risk, preventing the treasurer from allocating more than 10% of the total fund deposits to any single fiscal year.
The legislation allows for the lending of digital assets to potentially generate returns, provided that such activities do not increase the state’s financial exposure.
Arizona is currently trailing only Utah in the race among US states to establish formal crypto reserve investment policies.
While SB1373 advances, another Bitcoin-related bill, the Strategic Bitcoin Reserve Act (SB1025), co-sponsored by Republican Senator Wendy Rogers and Representative Jeff Weninger, has also gained momentum. SB1025, passed by the Senate with a 17-11 vote, takes a different approach by focusing on public fund investments in cryptocurrency assets.
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