#ArizonaBTCReserve Arizona has taken a significant step towards becoming the first US state to establish a Bitcoin reserve. The state's House of Representatives passed two bills, SB 1025 and SB 1373, which would allow the state to invest up to 10% of its public funds in Bitcoin and other digital assets.

*Key Details:*

- *Investment Limit*: Up to 10% of Arizona's $31.5 billion in public funds, approximately $3.14 billion, can be invested in digital assets.

- *Digital Assets Strategic Reserve Fund*: This fund will hold seized crypto assets and future appropriations, with a focus on high-liquidity and high-security instruments.

- *Potential Impact*: If fully implemented, Arizona's Bitcoin reserve would acquire around 31,000 BTC, making it the second-largest institutional Bitcoin holder in the US.

- *Current Status*: The bills are awaiting Governor Katie Hobbs' signature to become law.

*Potential Benefits and Concerns:*

- *Increased Adoption*: Arizona's Bitcoin reserve could set a precedent for other states and sovereign governments to explore similar initiatives.

- *Economic Growth*: Investing in Bitcoin could potentially drive economic growth and increase returns for the state.

- *Risk Management*: The bills emphasize the need for standardized risk controls and fiscal responsibility to protect public funds from volatility.

*What's Next?*

The fate of Arizona's Bitcoin reserve bills now rests with Governor Hobbs, who has not yet signaled her position on the bills. If signed into law, Arizona would become the first US state to formally hold Bitcoin in its treasury ¹.