SB1025

THE CONTEXT: Statute authorizes and provides guidelines for the State Treasurer to manage investments of public monies including for the beneficiaries of the State Land Trust, Local Governments and political subdivisions of Arizona and for the State of Arizona along with its respective agencies. The State Treasurer is responsible for the safekeeping of all securities for which they are the lawful custodian and must invest and reinvest trust and treasury monies in any statutory-outlined investments.

WHAT THE BILL DID: The final vetoed version would allow the State Treasurer or a state retirement system to invest up to 10% of the public monies under its control in virtual currency holdings, stipulate the State Treasurer or a state retirement system may store its virtual currency holdings in a secure segregated account within the strategic bitcoin reserve, if the U.S. Secretary of the Treasury establishes a strategic bitcoin reserve for the storage of government bitcoin holdings, and define public fund, retirement system and virtual currency.

WHY IT MATTERED: The practical reason for this bill was to give Arizonans and public officials a defined option for public monies under state law. It would allow the State Treasurer or a state retirement system to invest up to 10% of the public monies under its control in virtual currency holdings, and would also stipulate the State Treasurer or a state retirement system may store its virtual currency holdings in a secure segregated account within the strategic bitcoin reserve, if the U.S. Secretary of the Treasury establishes a strategic bitcoin reserve for the storage of government bitcoin holdings, rather than leave the current rule unchanged.