$BTC $ETH $BNB Arizona has become the first state in the U.S. to pass two bills requiring the use of public funds to invest in Bitcoin, paving the way for a wave of cryptocurrency adoption at the local level.
1. Arizona – Pioneer With Two Bitcoin Bills
SB 1373:
Establishes a Digital Asset Reserve Fund managed by the Treasurer.
Allows a maximum investment of 10% of the annual budget into Bitcoin/other digital assets.
SB 1025:
Allows state pension and finance systems to invest 10% of available capital into cryptocurrency (prioritizing Bitcoin).
Status: Passed the House, awaiting Democratic Governor Katie Hobbs to sign into law.
Context:
Former President Trump signed an executive order requiring the establishment of federal Bitcoin reserves in March 2025.
Arizona reflects the trend of formalizing Bitcoin in public financial management.
2. Other Supportive States
Texas (Republicans & Democrats Supporting Together)
SB-21: Allows public investment in Bitcoin, targeting $500 billion.
HB 4258: Expands local government investment in cryptocurrency.
Progress: Passed the Senate, awaiting review by the Government Efficiency Committee.
Advantage: Texas has long been a "paradise" for Bitcoin mining due to cheap energy.
Alabama
SB 283 & HB 482: Limits investment to 10% of the budget, requiring digital assets to have a market capitalization of ≥$750 billion (currently only Bitcoin meets this).
Expected effective date: 1/10/2025 if passed.
Minnesota
HF 2946/SF 2661: Allows the use of Bitcoin for tax payments and government transactions, amending 12 existing laws to integrate crypto.
Expected effective date: 1/1/2026.
3. States in Discussion
New Hampshire (HB 302): Maximum investment of 5% of the budget (reduced from 10% due to risk concerns).
Ohio (SB 57): Requires holding Bitcoin for at least 5 years, allows residents to donate BTC to the state fund.
Florida (HB 487): Awaiting approval from the Government Operations Committee.
4. States Rejecting Legislation
Oklahoma (HB 1203): Rejected by the Senate with a vote of 6-5.
Montana (HB 429): Rejected by the House 59-41.
Pennsylvania (HB 2664): Suspended processing since March 2025.
Reason: Concerns about price volatility, lack of clear legal framework.
5. Meaning & Trends
Arizona sets a precedent: Other states can follow if effective.
Bitcoin = "Digital Gold": Considered a portfolio diversification asset, reducing dependence on USD.
Challenges: Monitoring market risk and security.
