Wendy Rogers Proposes Bitcoin Reserves Amid Cryptocurrency Buzz

On January 14, Arizona legislators introduced Senate Bill 1025, the Strategic Bitcoin Reserve Act. Spearheaded by Sen. Wendy Rogers (R-District 7) and Rep. Jeff Weninger (R-District 17), the legislation passed the Arizona State Senate Finance Committee on January 27, garnering a vote of 5-2.

The proposed bill would permit the state treasurer, the Arizona Retirement System, and the Public Safety Personnel Retirement System to allocate up to 10% of public funds into cryptocurrency investments.

Sen. Rogers articulated the need for such measures, noting, “Since 2018, the value of the dollar held by the state has declined by roughly 25%. The Inflation Protection Act allows for a diverse set of investment tools for state fiduciaries to counter inflation’s effects and bolster the state’s financial security.” She added that this bill could enable the diversification of investments to include Bitcoin, which she deemed a significant hedge against inflation and default risks.

The next step for SB 1025 is a review by the Senate Rules Committee, which will consider potential amendments prior to a vote by the entire Senate and House of Representatives. If approved, Arizona could become the first state to establish a Bitcoin reserve; however, as of January 31, 15 other states were also exploring similar legislative actions.

As of January 29, state representatives Selina Bliss and Quang Nguyen of Legislative District 1 had not yet taken a stance on the bill. Meanwhile, state Sen. Mark Finchem expressed his support publicly on February 5.

In a related context, on January 23, former President Donald Trump issued an executive order aimed at enhancing American leadership in digital financial technology. The order initiated a working group to assess the feasibility of a national digital asset stockpile, potentially sourced from lawfully seized cryptocurrencies.

As reported by Forbes, the U.S. government holds over 200,000 Bitcoins, valued at approximately $21 billion due to law enforcement seizures. Establishing a reserve could allow for strategic asset management instead of piecemeal liquidation.

Bitcoin’s market price saw fluctuations, falling below $100,000 on February 3, largely influenced by anticipated tariffs by Trump on Canada, China, and Mexico. By February 5, Bitcoin’s value rebounded to $101,000, a notable increase from $43,004 seen on February 3, 2024.