Arizona is making headlines as the first US state to pass a bill approving a Bitcoin reserve. The bill, known as Senate Bill 1025, allows the state to invest up to 10% of its public funds in digital assets, including Bitcoin. This means Arizona could potentially allocate around $3.14 billion to Bitcoin investments, making it the second-largest institutional Bitcoin holder in the US.
The bill also establishes a Digital Assets Strategic Reserve Fund, which will hold seized crypto assets and future appropriations. This fund will be managed by the state treasurer, who will be responsible for investing in digital assets while minimizing financial risk.
Arizona's move is seen as a significant step towards public Bitcoin adoption in the US. Other states, such as Texas, Florida, and New Hampshire, are also exploring Bitcoin-backed reserve strategies. If signed into law, Arizona's Bitcoin reserve could set a precedent for other states and sovereign governments to follow.
It's worth noting that the bill still needs to be signed by Governor Katie Hobbs to become law. However, with Arizona's growing interest in digital asset legislation, it's likely that the state will continue to be at the forefront of crypto adoption.
