Arizona has officially become the first U.S. state to pass a bill allowing the creation of a Strategic Bitcoin Reserve, positioning itself as a pioneer in state-level crypto adoption. On April 28, the Arizona House passed Senate Bill 1025 with a narrow 31–25 vote.
The bill, introduced by Republican Senator Wendy Rogers, authorizes the state treasury to allocate up to 10% of its public funds into Bitcoin (BTC). The move is designed to diversify the state’s financial assets and act as a hedge against inflation.
Companion Legislation Expands Crypto Focus
Alongside SB1025, lawmakers also passed Senate Bill 1373 with a 37–19 vote. This companion measure proposes the creation of a digital asset reserve fund managed by the state treasurer, using assets seized during criminal cases. The fund would invest in a broader range of digital assets, further embedding cryptocurrency into Arizona's fiscal framework.
Political Uncertainty Looms
Despite the legislative success, both bills face uncertainty. Democratic Governor Katie Hobbs has pledged to veto all new bills until a bipartisan solution is reached for the state’s $122 million funding gap in the Division of Developmental Disabilities. Though she hasn't issued a specific stance on the Bitcoin bills, her broader veto strategy casts doubt on their final approval.
A Potential Blueprint for Other States
Arizona’s aggressive stance on Bitcoin could pave the way for other states to follow. Texas and New Hampshire are reportedly exploring similar initiatives, signaling a growing interest in integrating digital assets into public finance. If signed into law, Arizona's Strategic Bitcoin Reserve could become a national benchmark for crypto-forward governance.
