News
  • Qadir AK
    author-profile

    Qadir AK right arrow

    Author

    Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

    • author facebook
    • author twitter
    • linkedin

  • 2 minutes read

Arizona Approves Bitcoin Reserves, But Wyoming and Montana Are Saying No – Here’s Why

  • currency-symbol BTC $ 84,985.93 (1.84%) top gainer
Story Highlights
  • Arizona advances crypto legislation - two bills, one establishing a digital asset reserve and another focused on Bitcoin investment

  • While Arizona embraces crypto reserves, other states like Wyoming and Montana reject them due to volatility concerns.

  • Bitcoin's recent price drop fuels skepticism, while predictions suggest federal crypto legislation is forthcoming.

Arizona is pushing ahead with cryptocurrency investment as two Bitcoin reserve bills have passed the Senate, setting the stage for final approval in the stateโ€™s House of Representatives. While states like Wyoming and Montana are rejecting similar measures over concerns about cryptoโ€™s volatility, Arizona is doubling down on digital assets.

If these bills pass in the stateโ€™s House of Representatives, Arizona could become one of the first states to officially hold Bitcoin in its reserves.

Senate Approves Bitcoin Reserve Bills

On Feb. 27, the Arizona Senate approved the Strategic Digital Assets Reserve bill (SB 1373) in a 17-12 vote, sending it to the House for final approval. Sponsored by Republican Senator Mark Finchem, the bill aims to create a Digital Assets Strategic Reserve Fund, which will be managed by the state treasurer. The fund will include legislative appropriations and crypto assets seized by the state.

To limit risk, the treasurer would be allowed to invest no more than 10% of total fund deposits per fiscal year. However, the state could loan out digital assets to generate returns as long as it doesnโ€™t add financial risk.

Another Bill Aims to Allow Bitcoin Investments

A second Bitcoin-related bill is also moving forward. The Strategic Bitcoin Reserve Act (SB 1025), co-sponsored by Republican Senator Wendy Rogers and Representative Jeff Weninger, passed the Senate with a 17-11 vote.

Unlike Finchemโ€™s bill, which focuses on managing seized crypto assets, SB 1025 allows the state to invest public funds directly into Bitcoin and other cryptocurrencies. This signals Arizonaโ€™s growing commitment to incorporating digital assets into its financial strategy.

Crypto Legislation Gaining Momentum Nationwide

Dennis Porter, founder of Satoshi Action Fund, believes federal regulation of cryptocurrencies is inevitable. He predicts lawmakers will first regulate stablecoins, followed by broader market structure rules, and eventually, Bitcoin reserves.

While Arizona and Utah are leading the push for crypto reserves, 18 other states are still waiting for approval. However, not all states are on boardโ€”Montana, Wyoming, and others have rejected similar plans, calling Bitcoin too risky.

Trump Weighs Heavy on the Markets

Despite increasing political support for crypto, Bitcoinโ€™s price has taken a hit. The asset dropped below $80K, and analysts fear it could fall further to $70Kโ€“$75K. Bitcoin is down 17% this week, with Trumpโ€™s tariff policies adding to market uncertainty.

Amid the panic, Michael Saylor jokingly told investors to “sell a kidney if you must, but keep the Bitcoin.” While Saylor continues to advocate for a U.S. Bitcoin reserve, the recent price drop has given skeptics more reason to doubt Bitcoinโ€™s long-term stability.

https://twitter.com/saylor/status/1895325810942411234
Never Miss a Beat in the Crypto World!

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

Show More

Related Articles

Back to top button