Recent developments in Arizona and North Carolina are particularly noteworthy.
Let’s dive into the latest updates and what they mean for the future of Bitcoin.
Arizona: Pioneering Bitcoin as Legal Tender and a Reserve Asset
Arizona is pushing bold initiatives to weave Bitcoin into its public finances and economy, with three key bills (SB1025, SB1062, SB1373) currently under review in the House Commerce Committee.
- SB1025: Arizona Strategic Bitcoin Reserve Act (SBR)
- Details: This bill would allow the state treasury and public entities (e.g., pension funds) to allocate up to 10% of public funds into Bitcoin and other digital assets. It also proposes establishing a "Strategic Bitcoin Reserve" for secure asset management.
- Latest Update: After passing the Senate Finance Committee with a 5-2 vote, the bill is now being deliberated in the House Commerce Committee as of March 19, 2025. If approved, Arizona could soon see a portion of its public funds converted into Bitcoin.
- SB1062: Legal Tender Cryptocurrency
- Details: This bill aims to recognize Bitcoin as legal tender in Arizona, enabling its use for tax payments and public transactions.
- Latest Update: It passed the House Commerce Committee with a 6-4 vote! Having already cleared the Senate Finance Committee (4-3), it now awaits a full House vote and final Senate approval. If successful, Arizona could become the first U.S. state to officially designate Bitcoin as legal tender.
- SB1373: Additional SBR Legislation
- Details: Similar to SB1025, this bill likely addresses supplementary regulations for public fund investments in Bitcoin.
- Latest Update: It’s being reviewed alongside SB1025 in the House Commerce Committee as of March 19. The joint discussion suggests these bills are complementary in their approach.
Arizona’s aggressive push to integrate Bitcoin into both public reserves and its legal framework highlights its leadership in this space, fueled in part by the pro-crypto stance of the Trump administration.
North Carolina: A Practical Approach to Bitcoin Reserves
North Carolina is taking a more measured step with a new Bitcoin reserve bill, focusing on investment and security.
- SB327: North Carolina Bitcoin Reserve Bill
- Details: This legislation authorizes the state treasury to invest up to 10% of public funds in Bitcoin, with specific safeguards:
- Security: Assets must be stored in multi-signature (multisig) cold storage for protection.
- Transparency: Monthly audits to disclose investment details.
- Restrictions: Sales are prohibited except in cases of severe financial crisis.
- Latest Update: Introduced in early March 2025, the bill is in its initial stages and awaiting its first Senate review. While no specific vote date has been set, it could gain traction quickly.
North Carolina’s approach emphasizes security and transparency, positioning Bitcoin as a practical investment asset rather than a legal tender, unlike Arizona.
Why This Matters
- State-by-State Differences: Arizona is going all-in with legal tender recognition, while North Carolina focuses on secure investment—a contrast that reflects diverse strategies. Both, however, cap allocations at 10%, viewing Bitcoin as a portfolio diversification tool.
- Broader U.S. Trend: Over 13 states are currently pursuing similar Bitcoin reserve legislation (e.g., Utah, Illinois, Kentucky). The Trump administration’s crypto-friendly policies and Treasury Secretary Scott Bessent’s support for Bitcoin are accelerating this shift.
- Market Impact: If these bills pass, state-level demand for Bitcoin could drive price increases, and institutional players like pension funds might join the fray.
What’s Next?
Arizona’s bills, having cleared significant hurdles, could see final outcomes by mid-2025. North Carolina’s newer proposal might take until the second half of the year to show concrete progress.
The results in these states could set a precedent, sparking a wider wave of Bitcoin reserve adoption across the U.S.
