#ArizonaBTCReserve Arizona is poised to become the first U.S. state to establish a Bitcoin reserve, following the passage of two significant bills—SB1025 and SB1373—by the state legislature on April 28, 2025. These bills authorize the state treasurer and retirement systems to invest up to 10% of public funds, potentially amounting to $3.15 billion, into digital assets, primarily Bitcoin.
Overview of the Legislation
SB1025 – Arizona Strategic Bitcoin Reserve Act: This bill permits the state treasurer to allocate up to 10% of treasury and pension assets into digital currencies, including Bitcoin. It also stipulates that if the U.S. Treasury establishes a strategic Bitcoin reserve, Arizona's holdings could be stored in a secure, segregated account within that reserve.
SB1373 – Digital Assets Strategic Reserve Fund: This bill establishes a fund to manage seized or purchased cryptocurrencies, aiming to diversify the state's financial holdings. It allows the treasurer to lend assets from the fund, provided that risk is minimized.
Current Status
Both bills have been approved by the Arizona legislature and are now awaiting the signature of Governor Katie Hobbs. Previously, Governor Hobbs had indicated a potential veto amidst ongoing budget negotiations, stating she would veto all bills until a bipartisan funding solution was reached. However, with the passage of such legislation on April 24, the governor may be more open to signing SB1025 or SB1373 into law.
Potential Implications
If enacted, Arizona's initiative could set a precedent for other states considering the integration of digital assets into their financial strategies. The move reflects a growing interest in cryptocurrencies as potential tools for economic diversification and innovation at the state level. It also aligns with federal discussions about establishing a national crypto reserve.
Market Reaction
Following the legislative developments in Arizona, Bitcoin's price experienced a notable increase. As of April 29, 2025, Bitcoin is trading at approximately $94,857, reflecting a 25% increase from early-April lows.
