Arizona passes the first law to establish a state Bitcoin reserve, while Kentucky and South Dakota prepare to follow suit.
A growing number of U.S. states are moving to integrate Bitcoin into their financial reserves. On January 27, the Arizona Senate Finance Committee approved SB1025 by a vote of 5 to 2, a bill that would allow the state to invest up to 10% of public funds in digital assets.
Arizona’s proposal, sponsored by Senator Wendy Rogers and Representative Jeff Weninger, is the first Bitcoin strategic reserve bill to pass the committee stage and advance to a full Senate vote. If approved, the law would allow the State Treasurer, the Arizona State Retirement System, and the Public Safety Personnel Retirement System to diversify their holdings by including digital assets.
The movement is rapidly spreading across U.S. states. On January 28, representatives from Kentucky and South Dakota announced their intention to introduce similar bills in the coming weeks. These two states join an already substantial list that includes Texas, Ohio, and Pennsylvania, bringing the total number of states considering Bitcoin reserves to 13.
The non-profit organization Satoshi Action Fund, led by CEO Dennis Porter, is assisting lawmakers in drafting the proposals. In a post on X, the organization stated:
“To truly make an impact, we must focus on advancing and enacting strategic Bitcoin reserve legislation into law, turning these proposals into actionable policies that will shape a stronger, more resilient financial future for all Americans.”
