#ArizonaBTCReserve **Arizona's Strategic Bitcoin Reserve Initiative: Key Developments**
Arizona has emerged as a pioneer in U.S. state-level cryptocurrency adoption with the passage of two bills, **SB1025** and **SB1373**, which aim to establish a Bitcoin reserve and integrate digital assets into the state's financial strategy. Here's a detailed breakdown of the initiative:
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### **1. Legislative Approval and Bill Details**
- **SB1025**: Passed by the Arizona House on April 28, 2025, with a 31-25 vote, this bill allows the state treasurer and retirement systems to allocate **up to 10% of public funds** (approximately $3.14 billion from a $31.5 billion treasury) into Bitcoin and other digital assets. It also mandates compliance with federal guidelines if a national Bitcoin reserve is established.
- **SB1373**: Approved with a 37-19 vote, this companion bill creates a **Digital Assets Strategic Reserve Fund** to manage seized crypto assets and future appropriations, emphasizing blockchain-based audits and risk controls.
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### **2. Objectives and Framework**
- **Diversification**: The bills aim to diversify Arizona’s financial reserves, hedge against inflation, and position the state as a hub for blockchain innovation.
- **Transparency and Security**: Investments must adhere to strict fiduciary protocols, including on-chain auditing and liquidity requirements.
- **Strategic Positioning**: If fully deployed, Arizona could acquire **~31,000 BTC** (at current prices), making it the second-largest institutional Bitcoin holder among U.S. public entities.
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### **3. Governor’s Role and Uncertainties**
- **Governor Katie Hobbs** has not yet signed the bills. While she lifted a blanket veto threat after a bipartisan healthcare funding agreement on April 24, her stance on crypto legislation remains unclear.
- A veto would delay implementation, but bipartisan support in the legislature could enable an override attempt.
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### **4. Broader Implications**
- **National Precedent**: Arizona’s move aligns with similar efforts in Texas
