Arizona has become the first U.S. state to approve legislation creating a Strategic $BTC Reserve, following a landmark vote in the state legislature on April 28.
Key Legislative Developments:
- SB 1025 (Bitcoin Reserve Bill):
- Passed 31-25 in the Arizona House
- Allows the state treasury to allocate up to 10% of public funds to Bitcoin
- Requires holdings to be stored in a segregated Federal Reserve account
- SB 1373 (Digital Asset Forfeiture Fund):
- Approved 37-19
- Establishes a state-managed reserve for seized digital assets
- Permits limited asset lending with risk mitigation protocols
Sponsored by Republican Senator Wendy Rogers, the bills position Arizona as a national leader in crypto adoption, outpacing initiatives in Texas and New Hampshire. Proponents argue Bitcoin’s fixed supply and decentralization offer inflation protection and portfolio diversification.
Governor’s Veto Threat Looms
Democratic Governor Katie Hobbs has not directly addressed the crypto bills but recently vowed to veto all legislation until Republicans address a $122 million shortfall in disability healthcare funding. With 15 vetoes already issued in 2024—the highest rate of any U.S. governor—the bills face an uncertain fate.
Potential Impact
If enacted, Arizona’s move could catalyze similar efforts nationwide, reshaping how states integrate digital assets into fiscal strategy.
