#ArizonaBTCReserve

Arizona is on the verge of becoming the first U.S. state to establish a Bitcoin reserve, following the passage of two significant bills—SB1025 and SB1373—by its legislature on April 28, 2025. These bills authorize the state to invest up to 10% of its $31.5 billion public funds, potentially allocating approximately $3.14 billion into digital assets like Bitcoin .

Key Provisions of the Legislation

SB1025: Permits the Arizona State Treasurer and retirement systems to invest up to 10% of public funds in virtual currencies, specifically Bitcoin .

SB1373: Establishes a Digital Assets Strategic Reserve Fund to hold seized crypto assets and future appropriations, with mandates for on-chain auditability and standardized risk controls .

If fully implemented, Arizona could become the second-largest public institutional holder of Bitcoin in the U.S., potentially acquiring around 31,000 BTC .

Political Landscape and Future Prospects

While the legislature has approved the bills, they now await the signature of Governor Katie Hobbs. Governor Hobbs has indicated a potential veto, citing a budget stalemate and the need for a bipartisan funding solution that protects healthcare for Arizonans with disabilities .

In parallel, Arizona lawmakers are considering a separate proposal to designate Bitcoin as legal tender, introduced by State Senator Wendy Rogers . This move aligns with a broader trend of U.S. states exploring the integration of cryptocurrencies into public financial management.

Arizona's initiative reflects a growing interest among state governments in leveraging digital assets to diversify public funds and embrace blockchain innovation.