Arizona is on the verge of becoming the first U.S. state to establish a Strategic Bitcoin Reserve, following the passage of two significant bills—Senate Bill 1025 (SB1025) and Senate Bill 1373 (SB1373)—by the state legislature on April 28, 2025.
Overview of the Legislation
SB1025: This bill authorizes the Arizona State Treasurer to invest up to 10% of state-managed assets, including treasury and pension funds, into digital assets such as Bitcoin. With the state overseeing approximately $31.5 billion in public funds, this could translate to an investment of up to $3.14 billion in digital assets.
SB1373: This companion bill establishes a Digital Assets Strategic Reserve Fund. The fund is designed to manage seized or purchased crypto assets, ensuring transparency through on-chain auditability and implementing standardized risk controls.
Current Status
Both bills have passed the Arizona House of Representatives and are now awaiting the signature of Governor Katie Hobbs to become law. Governor Hobbs has previously indicated a willingness to veto legislation amid budget negotiations, but recent bipartisan agreements have alleviated some of these concerns.
Broader Implications
Arizona's initiative reflects a growing trend among U.S. states to explore the integration of digital assets into public financial management. Similar legislative efforts are underway in states like Texas, Florida, and New Hampshire. At the federal level, discussions about establishing a national Strategic Bitcoin Reserve have also emerged.
If Governor Hobbs signs the bills into law, Arizona will set a precedent in state-level cryptocurrency adoption, potentially influencing other states to consider similar measures.
