#ArizonaBTCReserve Arizona’s Bitcoin reserve bills represent a historic shift toward crypto integration in public finance. While Governor Hobbs’ veto threat casts uncertainty, their passage could catalyze nationwide adoption. If signed, Arizona would set a precedent for leveraging Bitcoin as a treasury asset, blending fiscal innovation with blockchain’s decentralized promise.

Arizona has emerged as a frontrunner in U.S. state-level cryptocurrency adoption, with two groundbreaking bills (SB 1025 and SB 1373) advancing through its legislature.

SB 1025 (Bitcoin-Specific Reserve):

- Allows the state treasurer and retirement systems to allocate up to 10% of public funds (e.g., rainy day funds) into Bitcoin.

- Requires Bitcoin holdings to be stored in a segregated Federal Reserve account for security.

- Passed the Arizona House on April 28 with a 31–25 vote and the Senate earlier in February.

SB 1373 (Broader Digital Asset Reserve):

- Focuses on creating a reserve fund using assets seized from criminal proceedings, permitting investments in Bitcoin and other digital assets.

- Passed the House with a 37–19 vote and includes provisions allowing the treasurer to lend assets to generate returns, provided risks remain minimal.