#ArizonaBTCReserve Arizona is on the verge of making history with the passage of the Strategic Bitcoin Reserve Act (SB1025), which would permit the state to invest up to 10% of its public funds—including those managed by the state treasurer and public pension systems—into Bitcoin and other digital assets. If enacted, Arizona would become the first U.S. state to legally allocate public funds to cryptocurrency investments.

Key Provisions of the Bill

Investment Cap: Public funds may invest up to 10% of their holdings in virtual currencies, defined as digital representations of value functioning as a medium of exchange, unit of account, and store of value—excluding representations of the U.S. dollar or foreign currencies.

Secure Storage: The bill mandates secure storage solutions for these digital assets, including the potential use of a federally established Strategic Bitcoin Reserve, should one be created by the U.S. Treasury.

Scope of Funds: The legislation applies to public funds under the control of the state treasurer and retirement systems, encompassing a significant portion of Arizona's public financial resources.

Legislative Progress

The bill, co-sponsored by State Senator Wendy Rogers and Representative Jeff Weninger, passed the Arizona Senate Finance Committee with a 5-2 vote on January 27, 2025. It subsequently moved to the Senate Rules Committee and, upon approval, advanced to the full Senate. As of February 27, 2025, the Arizona Senate passed the bill, moving it closer to becoming law.

Broader Implications

Arizona's initiative has sparked interest in other states, with at least 11 states, including Texas, Pennsylvania, and Ohio, introducing similar Bitcoin reserve bills. Analysts suggest that Arizona's move could trigger a "domino effect," encouraging more states to consider integrating digital assets into their financial strategies.