PHOENIX—The Arizona has advanced the Arizona Strategic Bitcoin Reserve (SBR) Act (Senate Bill 1025) out of committee, positioning it to become the first U.S. state to vote on legislation that would authorize investing state funds in Bitcoin, Bitcoinist reported.
The proposed act allows a “public fund” to invest not more than 10% of its assets under management into virtual currencies such as BTC, Bitcoinist explained.
“A public fund may invest not more than ten percent of the public monies under its control in virtual currency holdings … If the United States Secretary of the Treasury establishes a strategic Bitcoin reserve for the storage of government Bitcoin holdings, a public fund may store the virtual currency holdings of the public fund in a secure segregated account within the strategic Bitcoin reserve,” the bill states.
The legislation defines “virtual currency” as a “digital representation of value that functions as a medium of exchange, a unit of account, and a store of value other than a representation of the United States dollar or a foreign currency,” and further stipulates that if federal authorities create a SBR, the state may opt to store its Bitcoin in that facility, Bitcoinist explained.