Arizona has made significant strides in establishing a Bitcoin reserve, becoming the first US state to pass a bill allowing the investment of public funds in digital assets like Bitcoin. Here's what's happening ¹ ²:
- *Arizona's Bitcoin Reserve Bill*: The Arizona House of Representatives passed two bills, Senate Bill 1025 and Senate Bill 1373, which would permit the state treasurer to invest up to 10% of public funds, approximately $3.14 billion, in Bitcoin and other digital assets.
- *Potential Impact*: If enacted, Arizona's Bitcoin reserve would acquire around 31,000 BTC, making it the second-largest institutional Bitcoin holder among US public entities, surpassing major corporate holders like Tesla and Marathon Digital.
- *Governor's Approval*: The bills now await Governor Katie Hobbs' signature to become law. Although she previously threatened to veto certain legislation, recent bipartisan agreements may have shifted her stance.
- *National Movement*: Arizona's move aligns with growing interest in cryptocurrency reserves at the federal level. President Donald Trump signed an executive order proposing a "Strategic Bitcoin Reserve" and a "Digital Asset Stockpile," while Senator Cynthia Lummis introduced legislation to hold over 1 million BTC.
- *Other States Following Suit*: Around 15 other states are considering similar legislation, with New Hampshire's House passing a comparable bill that awaits a Senate floor vote.
This development could set a precedent for other states and sovereign governments exploring cryptocurrency investment frameworks, potentially influencing broader market dynamics.
