#ArizonaBTCReserve Arizona has taken significant steps towards establishing a strategic Bitcoin reserve. Here's what's happening ¹ ²:

- *Bill Passage*: The Arizona House of Representatives passed two bills, Senate Bill 1025 (SB 1025) and Senate Bill 1373 (SB 1373), with a 31-25 vote and 37-19 vote, respectively. These bills aim to allow the state to invest up to 10% of its public funds in digital assets like Bitcoin.

- *Digital Assets Strategic Reserve Fund*: The bills establish a Digital Assets Strategic Reserve Fund to hold seized crypto assets and future appropriations, with mandates for on-chain auditability and standardized risk controls.

- *Investment Allocation*: If enacted, Arizona would allocate up to $3.14 billion (10% of its $31.4 billion in public assets) to Bitcoin and other digital assets. This would make Arizona the second-largest institutional Bitcoin holder among US public entities, with approximately 31,000 BTC.

- *Governor's Signature*: The bills now await Governor Katie Hobbs' signature to become law. Although she recently ended a veto threat linked to disability funding disputes, her stance on the Bitcoin bills remains uncertain.

- *National Precedent*: Arizona's move could set a national precedent for Bitcoin integration into public finance frameworks, potentially influencing other states and sovereign governments to follow suit.

This development has sparked interest in the crypto community, with some viewing it as a positive step towards mainstream adoption. However, others have raised concerns about the potential risks associated with investing public funds in volatile digital assets ².