#ArizonaBTCReserve Arizona is on the verge of becoming the first U.S. state to establish a Strategic Bitcoin Reserve. On April 28, 2025, the Arizona House of Representatives passed two significant bills—Senate Bill 1025 (SB1025) and Senate Bill 1373 (SB1373)—that authorize the state to invest up to 10% of its $31.5 billion in public funds into digital assets, primarily Bitcoin.

Key Details of the Legislation

SB1025: Known as the "Arizona Strategic Bitcoin Reserve Act," this bill permits the state treasurer and retirement systems to allocate up to 10% of their available funds into virtual currencies, with a specific focus on Bitcoin.

SB1373: This bill establishes a Digital Assets Strategic Reserve Fund to manage seized or purchased crypto assets, ensuring transparency through on-chain auditability and adherence to standardized risk controls.

If fully implemented, Arizona could invest approximately $3.14 billion into digital assets, potentially acquiring around 31,000 BTC at current market prices.

Current Status and Next Steps

Both bills have cleared the legislature and are awaiting the signature of Governor Katie Hobbs. Previously, Governor Hobbs indicated a willingness to veto all bills until a bipartisan budget addressing healthcare funding for Arizonans with disabilities was passed. However, with a budget agreement reached on April 24, the likelihood of her approving the Bitcoin reserve legislation has increased.

Broader Implications

Arizona's initiative aligns with a growing trend among U.S. states exploring the integration of digital assets into public finance. States like Texas, Florida, and New Hampshire are considering similar measures. At the federal level, discussions are underway regarding the establishment of a national crypto reserve, reflecting an increasing institutional interest in cryptocurrencies as legitimate reserve assets.

If Governor Hobbs signs the bills into law, Arizona will set a precedent in incorporating Bitcoin into state-level financial strategy, potentially influencing other states to adopt similar approaches.