Arizona took a significant step towards integrating cryptocurrency into its financial strategy with the approval of Senate Bills 1025 and 1373 on April 28, 2025. These bills authorize the state treasurer to invest up to 10% of the assets managed by the state, potentially around $3.14 billion, in digital assets like Bitcoin. This move establishes a "Strategic Reserve Fund for Digital Assets," which will be capitalized with seized cryptocurrency assets and future legislative appropriations.
The legislation requires adherence to standard fiduciary risk management protocols to protect public funds from market volatility and custody risks. Arizona's initiative reflects similar explorations in other states like Texas and Florida, aiming to attract blockchain innovation and diversify public asset portfolios. The final confirmation from Governor Katie Hobbs is now awaited for these bills to become law.
While Arizona is pioneering a state-level Bitcoin reserve, it is important to note that House Bill 2492, related to voter registration, is a separate legislative matter. This bill, which faced legal challenges regarding address verification requirements, is not related to the state's cryptocurrency initiatives. Furthermore, while Arizona previously considered allowing tax payments in cryptocurrencies, there is no current information indicating that the Arizona Department of Revenue holds Bitcoin. Recent legislation (SB1024 and SB1128) that will take effect on January 1, 2026, will allow state agencies to accept cryptocurrencies for payments, if agreements with service providers are established.
