#ArizonaBTCReserve Arizona has taken a significant step towards becoming the first US state to establish a Bitcoin reserve. The state's House of Representatives passed two bills, Senate Bill 1025 and Senate Bill 1373, which would allow the state to invest up to 10% of its public funds in digital assets, including Bitcoin. This move aims to attract blockchain innovation and diversify public asset portfolios.¹

*Key Aspects of the Bills:*

- *Investment Limit*: Up to 10% of Arizona's $31.5 billion in public funds, approximately $3.14 billion, can be invested in digital assets.

- *Digital Assets Strategic Reserve Fund*: This fund will hold seized crypto assets and future appropriations, with mandates for on-chain auditability and standardized risk controls.

- *Potential Impact*: If fully deployed, Arizona's Bitcoin reserve would acquire around 31,000 BTC, making it the second-largest institutional Bitcoin holder among US public entities.

The bills have been sent to Governor Katie Hobbs' desk for signature. If signed into law, Arizona would set a precedent for other states and sovereign governments exploring Bitcoin-backed reserve strategies.²

Other states, such as Texas, Florida, and New Hampshire, are also considering similar initiatives. The approval of Arizona's Bitcoin reserve bill could potentially drive broader adoption and increase demand for Bitcoin.³