#ArizonaBTCReserve

Arizona has taken a bold step toward integrating Bitcoin into its financial framework by approving two groundbreaking bills, SB 1025 and SB 1373, positioning the state as a pioneer in cryptocurrency adoption. These bills, passed by the Arizona House of Representatives on April 28, 2025, with votes of 31-25 and 37-19 respectively, await the signature of Governor Katie Hobbs to become law. SB 1025, known as the Arizona Strategic Bitcoin Reserve Act, allows the state treasurer and retirement systems to invest up to 10% of public funds—potentially $3.14 billion of the state’s $31.4 billion in assets—into Bitcoin and other virtual currencies. SB 1373 establishes a Digital Assets Strategic Reserve Fund, managed by the state treasurer, which will hold digital assets seized through criminal proceedings and state appropriations, with the same 10% investment cap annually. This fund also permits lending assets to generate returns, provided financial risks remain low. Arizona’s move reflects a broader trend among states like Texas and Utah to diversify public finance with digital assets, aiming to hedge against inflation and modernize economic strategies. However, Governor Hobbs, with a history of vetoing 22% of bills in 2024, may pose a final hurdle, especially given her focus on resolving disability funding issues. If signed into law, Arizona could become the first U.S. state to formally hold Bitcoin in its treasury, potentially acquiring around 31,000 BTC and setting a precedent for nationwide cryptocurrency integration.