In the context of increasing global attention on digital assets, Arizona has become the first state in the United States to establish a strategic Bitcoin reserve through legislation. On April 28, 2025, the Arizona House and Senate passed Senate Bill 1025 (SB1025) and Senate Bill 1373 (SB1373) with voting results of 31 to 25 and 31 to 25, respectively. These two bills authorize the state treasury to invest up to 10% of public funds in digital assets such as Bitcoin, aiming to diversify assets, hedge against inflation, and take a leading position in digital financial innovation.
Senate Bill 1025 was introduced by Republican Senator Wendy Rogers, allowing the state treasury to invest a portion of public funds in Bitcoin. Senate Bill 1373 proposes the establishment of a digital asset strategic reserve fund managed by the state treasury, utilizing assets seized in criminal proceedings and future appropriations to build the reserve. The passage of these two bills puts Arizona at the forefront of digital asset adoption nationwide.
Supporters believe that establishing a Bitcoin reserve will help Arizona diversify its assets, hedge against inflation, and position the state as a leader in digital financial innovation. They point out that Bitcoin has a fixed supply and decentralized characteristics, offering advantages over traditional reserve assets, particularly in the context of concerns about national debt and currency devaluation.
However, critics warn that the extreme volatility of Bitcoin prices could expose state funds to significant financial risks. Some also express concerns about the lack of federal regulation of crypto assets and question whether public funds should be used to invest in speculative assets.
Currently, these two bills have been submitted to Governor Katie Hobbs for consideration. Hobbs previously promised to veto all bills sent to her desk until the state legislature passes a new budget. Although she has not made specific comments on these two bills, she has consistently maintained her broader veto stance, bringing uncertainty to the bills' prospects.
Arizona's initiative comes amid a broader discussion across the U.S. regarding the role of digital assets in public finance. While several states have debated legislation related to crypto assets in recent years, Arizona is the first state to explicitly authorize the establishment of a Bitcoin reserve.
If the governor signs these bills, Arizona will officially become the first state in the U.S. to incorporate Bitcoin into its financial strategy. This may not only provide a reference for other states but could also influence digital asset policies globally.
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The above content is for informational sharing only and does not constitute any investment advice.
