Arizona took a significant step toward integrating cryptocurrency into its financial strategy with the passage of Senate Bills 1025 and 1373 on April 28, 2025. These bills authorize the state treasurer to invest up to 10% of the state’s managed assets, potentially around $3.14 billion, in digital assets such as Bitcoin. The move establishes a “Strategic Digital Asset Reserve Fund,” which will be capitalized with seized cryptocurrency assets and future legislative appropriations. The legislation requires adherence to standard fiduciary risk management protocols to protect public funds from market volatility and custody risks. Arizona’s initiative mirrors similar explorations in other states such as Texas and Florida, aimed at attracting blockchain innovation and diversifying public asset portfolios. Final confirmation from Governor Katie Hobbs is now awaited for these bills to become law. While Arizona is pioneering a state-level Bitcoin reserve, it is important to note that House Bill 2492, which relates to voter registration, is a separate legislative issue. This bill, which has faced legal challenges regarding its proof-of-address requirements, is not related to the state’s cryptocurrency initiatives. Additionally, while Arizona has considered allowing cryptocurrency tax payments in the past, there is currently no information indicating that the Arizona Department of Revenue holds Bitcoin. Recent legislation (SB1024 and SB1128) that will go into effect on January 1, 2026, will allow state agencies to accept cryptocurrency for payments if agreements with service providers are established.
