The Arizona House of Representatives Commerce Committee has approved the Bitcoin Reserve Bill (SB1373) in a closely contested 6-to-4 vote.

The bill marks a significant milestone in Arizona's efforts to integrate cryptocurrency into its financial framework. It aims to establish a 'Digital Assets Strategic Reserve Fund,' which would be managed by the state's Treasury, with funds derived from state allocations and seized cryptocurrency assets.

Sponsored by Republican Senator Mark Finchem, SB1373 includes risk management provisions, such as limiting the Treasurer's ability to invest more than 10% of the fund in any single year.

The bill also permits the lending of digital currencies to generate returns, with safeguards to prevent excessive financial exposure.

Arizona is now positioned as a leading state in the US's push for crypto legislation, following Utah in adopting formal crypto reserve investment policies. Another related bill, the Strategic Bitcoin Reserve Act (SB1025), is gaining momentum and focuses on public fund investments in digital assets.

Meanwhile, Bitcoin's price has seen mixed signals in recent days. Despite a 1.36% increase following the bill's approval, Bitcoin has dropped 13% over the past month.

Technical indicators show a neutral to slightly bearish trend, though there are signs of a potential bullish reversal, with the MACD showing a positive divergence.

For more information on these topics, visit diplomacy.edu.