On February 20, 2022, Arizona recently became the first state in the U.S. 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, which is expected to potentially bring over $2 billion in inflows to the crypto market. The bill was promoted by Senator Wendy Rogers and aims to diversify investment risks and combat inflation, but critics worry that Bitcoin's high volatility could threaten the safety of public funds. The bill has been passed by both chambers of 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, which may encourage 15 other states to follow suit. This legislation is seen as an important milestone for the integration of cryptocurrency into traditional finance.