Arizona Legislature Passes Bitcoin Reserve Bill, Sends It to Governor

Arizona lawmakers have passed a bill that would allow the state treasury and retirement systems to invest up to 10% of available funds in digital assets, specifically Bitcoin, and the bill has been sent to the governor for approval, Bloomberg Government reported. The bill, called the Arizona Strategic Bitcoin Reserve Act, was passed by the state legislature on Monday.

"The bill represents an emerging approach for state governments to incorporate cryptocurrencies into public financial management, reflecting the growing mainstream acceptance of digital assets," the bill summary said.

The bill's co-sponsors are both Republicans: Senator Wendy Rogers and Representative Jeff Weninger. If the bill is signed by Democratic Governor Katie Hobbs, the state would become the first to require public funds to be invested in Bitcoin.

Several states, including Iowa, Missouri and Texas, are considering whether to establish a strategic Bitcoin reserve. At the federal level, President Donald Trump signed an executive order in March to establish a strategic Bitcoin reserve and a digital asset reserve.

Some asset managers have already given their opinions on how much Bitcoin investors should hold. According to Business Insider, BlackRock recommended allocating 1% to 2% of a portfolio to Bitcoin in December last year. Fidelity recommends a slightly higher proportion of 2% to 5%.