#ArizonaBTCReserve

1. Legislation :

- Arizona has advanced two bills to establish a state-level Bitcoin reserve:

- SB 1025 (Arizona Strategic Bitcoin Reserve Act): Allows the state treasurer and retirement systems to invest up to 10% of public funds in Bitcoin and other digital assets.

- SB 1373 (Strategic Digital Assets Reserve Bill): Creates a fund for seized crypto assets and permits investments in digital assets.

- Both bills passed the Arizona House and Senate and are awaiting Governor Katie Hobbs' signature as of April 28, 2025 .

2. Investment Scope :

- If approved, Arizona could allocate up to $3.14 billion (10% of its $31.5 billion in public assets) into Bitcoin and NFTs, potentially acquiring ~31,000 BTC at current prices .

- The reserve would also include crypto assets seized from criminal cases 3. Progress :

- Status : The bills are "in progress," having cleared legislative hurdles but pending the governor's decision. Governor Hobbs has a history of vetoing bills, raising uncertainty .

- Timeline : The bills were introduced in early 2025, passed the Senate in January, and cleared the House by late April .

4. National Context :

- Arizona is leading a U.S. "Bitcoin reserve race," with states like Texas, New Hampshire, and Oklahoma also proposing similar measures. Utah and Pennsylvania have seen failed attempts .

- If enacted, Arizona would be the first U.S. state to formally hold Bitcoin in its treasury .

5. Motivations :

- Diversification : Hedge against inflation and modernize state reserves.

- Innovation : Attract blockchain businesses and set a precedent for crypto adoption in public finance .