Arizona Advances Bitcoin Reserve Bill as South Dakota Prepares to Follow Suit

Arizona lawmakers have advanced a bill permitting public funds to be invested in Bitcoin and other digital assets, with the state Senate Finance Committee approving the measure in a 5-2 vote on January 27.

Co-sponsored by Wendy Rogers and Jeff Weninger, the proposed legislation—SB1025, also known as the “Arizona Strategic Bitcoin Reserve Act”—would allow the state to allocate up to 10% of public funds, including those managed by the state treasurer and retirement systems, to virtual currencies such as Bitcoin.

The bill also outlines provisions for securely storing digital asset holdings in a segregated account within a potential federal Strategic Bitcoin Reserve, should the Secretary of the Treasury establish one for government holdings.

Meanwhile, the U.S. Senate on Monday confirmed Scott Bessent as Treasury Secretary with bipartisan support, in a 68-29 vote. A proponent of Trump’s economic policies, Bessent opposes a central bank digital currency and is viewed as pro-Bitcoin.

Following its approval by the Finance Committee, Arizona’s Bitcoin reserve bill now advances to the Senate Rules Committee, which will determine the guidelines for floor debate and amendments. If passed by the full Senate, the bill will move to the House of Representatives for further consideration.

According to Dennis Porter, CEO and co-founder of the Satoshi Action Fund, Arizona is the first state to see a Bitcoin reserve bill clear a legislative committee. If enacted, the legislation would make Arizona the first state to officially invest public funds in Bitcoin, positioning it as a leader in Bitcoin adoption across the U.S.

As of January 27, eleven states have introduced their own Bitcoin reserve bills, Porter noted. He also indicated that at least 15, and potentially 16, states are preparing to introduce similar legislation.

South Dakota Joins the Push for Bitcoin Reserves

South Dakota is also preparing to introduce a bill that would add Bitcoin to the state’s financial reserves. State Representative Logan Manhart announced plans on Tuesday to bring forward a bill that would create a strategic Bitcoin reserve, marking the state’s effort to officially recognize Bitcoin as part of its financial assets.

Although a specific timeline for the bill’s introduction has not been confirmed, the push for Bitcoin reserves in South Dakota is part of a broader movement in several U.S. states. The momentum aligns with President Donald Trump’s pro-crypto stance, which has sparked renewed interest in integrating Bitcoin into state and national financial policies.

With Arizona already advancing its Bitcoin reserve bill, South Dakota’s efforts further underscore the increasing adoption of Bitcoin in U.S. state-level financial policy. Arizona’s move to allocate up to 10% of public funds to Bitcoin could serve as a benchmark for South Dakota and other states looking to join this wave.