#ArizonaBTCReserve **#ArizonaBTCReserve: A Historic Step Toward State-Level Bitcoin Adoption**

Arizona is on the verge of making history as the first U.S. state to establish a **Bitcoin reserve**, with two bills—**SB 1025** and **SB 1373**—passing both the House and Senate. If signed by Governor **Katie Hobbs**, the legislation would allow the state to allocate **up to 10% of its $31.4 billion in public funds** into Bitcoin and other digital assets, potentially acquiring **31,000 BTC** (worth ~$3.14 billion) .

This move mirrors **federal efforts** under former President Trump’s proposed "strategic crypto reserve" and positions Arizona as a leader in **crypto-friendly policies** . Supporters argue Bitcoin serves as a **hedge against inflation**, while critics warn of volatility risks .

Governor Hobbs, a Democrat, has previously vetoed bills over budget disputes, but with a recent bipartisan deal on disability funding, hopes are high for approval . If enacted, Arizona could trigger a **domino effect**, inspiring other states like **Texas and New Hampshire** to follow suit .

The market has already reacted bullishly, with Bitcoin surging **4.2%** post-announcement . Whether this becomes law or not, Arizona’s push signals a **growing institutional embrace of Bitcoin** as a **legitimate reserve asset**.