On May 4, 2023, Arizona became the first state in the United States to pass the **Bitcoin Strategic Reserve Act (SB1025)**, allowing up to 10% of state public funds (such as retirement funds) to be invested in Bitcoin, potentially bringing over $2 billion in inflows to the crypto market. The bill was pushed by Senator Wendy Rogers and aims to diversify investment risks and address inflation, but critics worry that Bitcoin's high volatility could threaten the safety of public funds. The bill has been passed by both the state legislature and is currently awaiting Governor Katie Hobbs' signature. If enacted, Arizona will become the first state to establish an official Bitcoin reserve, potentially prompting 15 other states to follow suit. This legislation is seen as a significant milestone in the integration of cryptocurrency into traditional finance.