#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 Arizona to invest up to 10% of its $31.5 billion public funds in digital assets, including Bitcoin.
*Key Provisions:*
- *Investment Limit*: Up to 10% of Arizona's public funds, approximately $3.14 billion, can be invested in digital assets.
- *Digital Assets Strategic Reserve Fund*: A new fund will be established to manage seized or purchased crypto assets, with a focus on transparency and risk management.
- *On-chain Auditability*: The fund will maintain on-chain auditability and adhere to standard risk controls ¹ ².
*Potential Impact:*
- *Increased Adoption*: Arizona's move could set a precedent for other states and sovereign governments to explore Bitcoin as a reserve asset.
- *Financial Innovation*: The legislation could position Arizona as a leader in financial innovation, attracting blockchain and cryptocurrency businesses.
- *Diversified Reserves*: Investing in Bitcoin could provide a hedge against inflation and currency devaluation ³ ⁴.
*Next Steps:*
- *Governor's Approval*: The bills now await Governor Katie Hobbs' signature to become law. While she hasn't publicly indicated her stance, the bipartisan support for the bills suggests a strong chance of approval ² ¹.
