#ArizonaBTCReserve Arizona is poised to become the first U.S. state to establish a Bitcoin reserve, following the passage of two significant bills—SB1025 and SB1373—by the state legislature. These bills authorize the state treasurer and retirement systems to invest up to 10% of public funds in digital assets, primarily Bitcoin.  

🏛️ Legislative Highlights

• SB1025: Arizona Strategic Bitcoin Reserve Act

Permits the state treasurer and retirement systems to allocate up to 10% of their portfolios to virtual currencies, with a focus on Bitcoin. The bill also allows for the storage of these assets in a secure, segregated account within a potential federal Strategic Bitcoin Reserve. 

• SB1373: Digital Assets Strategic Reserve Fund

Establishes a fund to manage digital assets acquired through seizures or legislative appropriations. The fund mandates on-chain auditability and standardized risk controls to ensure transparency and security.  

Combined, these measures could enable Arizona to invest approximately $3.14 billion of its $31.5 billion in public funds into digital assets, potentially acquiring around 31,000 BTC at current prices. 

📈 Market Context

The legislative developments coincide with a bullish trend in the cryptocurrency market. Bitcoin is currently trading at $94,974, reflecting a 25% increase from earlier this month.  

🖋️ Next Steps

The bills are now awaiting the signature of Governor Katie Hobbs. While she had previously indicated a willingness to veto legislation amid budget disputes, a recent bipartisan agreement may influence her decision. If signed into law, Arizona would set a precedent for state-level integration of cryptocurrency into public financial management.   

This move could pave the way for other states to consider similar strategies, further legitimizing digital assets within governmental investment portfolios.