#BinanceAlphaAlert Arizona has recently taken significant steps towards establishing a Bitcoin reserve. Here's a breakdown of the situation as of today, April 29, 2025:
Key Developments:
* Two Bills Passed: The Arizona House of Representatives has approved two Senate bills, SB 1025 (Arizona Strategic Bitcoin Reserve Act) and SB 1373 (Strategic Digital Assets Reserve Bill).
* Investment in Digital Assets: These bills allow the state treasurer to invest up to 10% of state-managed assets in digital currencies, including Bitcoin, stablecoins, and NFTs.
* Strategic Reserve Fund: The legislation also establishes a Digital Assets Strategic Reserve Fund. This fund will be capitalized using seized crypto assets and future legislative appropriations.
* Governor's Approval Pending: Both bills are now awaiting final confirmation (signature) from Arizona Governor Katie Hobbs.
* Bipartisan Support: Despite some initial concerns and a veto threat from the Governor related to unrelated budget issues (disability funding), the bills have garnered bipartisan support and moved forward. An agreement on disability funding was reached on April 24th, potentially easing the Governor's opposition.
* Potential Investment Size: A 10% allocation could result in approximately $3.14 billion being invested in digital assets, potentially acquiring around 31,000 BTC at current prices.
* Fiduciary Responsibility: The bills mandate that all investments must adhere to standard fiduciary risk management protocols to protect public funds from volatility and custodial risks.
* Digital Asset Lending: SB 1373 permits the state treasurer to lend digital assets to generate additional returns, provided it does not increase financial risks.
* Comparison to Other States: Arizona's initiative positions it as a potential leader in the movement among US states to explore Bitcoin-backed reserve strategies. Other states like Texas, Florida, and New Hampshire are also considering similar legislation.
Arizona House Bill 2603:
It's important to note that Arizona House Bill 2603 is a separate piece of
