Arizona is taking a pioneering step toward integrating cryptocurrency into its state finances through two proposed bills, SB 1373 and SB 1025. SB 1373 seeks to establish a Digital Assets Strategic Reserve Fund, allowing the state treasurer to invest up to 10% of its deposits in cryptocurrencies and earn returns through lending digital assets. SB 1025 would authorize public funds, including retirement systems, to invest in Bitcoin and other digital assets, potentially storing them in a federal Strategic Bitcoin Reserve if created. These initiatives highlight Arizona’s forward-thinking approach to diversifying its financial portfolio and embracing emerging financial technologies, despite broader concerns over crypto volatility.
