Arizona’s legislature has approved bills to create a Bitcoin reserve, allowing up to 10% of public funds to be invested in Bitcoin. This initiative also includes the formation of a Digital Assets Strategic Reserve Fund. The bills await the governor’s approval and aim to align Arizona with other states pursuing blockchain innovation.
In a significant move today, Arizona’s lawmakers have passed two important pieces of legislation aimed at establishing the state as a frontrunner in Bitcoin adoption. The Arizona House of Representatives approved Senate Bill 1025 and Senate Bill 1373, which now await the signature of Governor Katie Hobbs. If she signs these bills, Arizona would potentially become the first state to create a Bitcoin reserve.
Senate Bill 1025 lays the groundwork for Arizona to allocate up to 10% of its treasury and pension assets for investment in digital assets, notably Bitcoin. On the other hand, SB 1373 proposes the formation of a Digital Assets Strategic Reserve Fund. This includes a plan for utilizing seized cryptocurrency and future appropriations to gradually build the reserve. It’s worth noting that the new legislation incorporates on-chain auditability and risk management protocols.
This legislative push aligns Arizona with other states like Texas, Florida, and New Hampshire, which are also exploring similar initiatives. The crypto market responded positively to the news, with Bitcoin prices nearing $95k—this reflects an impressive 25% rise from earlier lows in April, a sign of growing institutional interest.
However, the political landscape remains uncertain. Governor Hobbs, who had previously indicated she might veto legislation until a resolution on disability funding was reached, lifted that threat following a bipartisan agreement on April 24. Yet, as of now, she hasn’t publicly shared her position on the Bitcoin reserve bills. Her decision in the coming days could firmly establish Arizona as a leader in Bitcoin adoption or lead to a potential override attempt if the bills are vetoed.
