Arizona recently passed bills (SB 1025 and SB 1373) allowing the state to invest up to 10% of public funds in digital assets like Bitcoin and establish a Digital Assets Strategic Reserve Fund. This fund would utilize seized crypto and future appropriations.

The aim is to position Arizona as a leader in blockchain innovation and diversify state holdings. Proponents believe this could attract investment and provide a hedge against traditional financial risks. However, concerns exist regarding the volatility and security of digital assets. The governor's final approval is still pending.