TLDR
- Arizona House passed bills to invest public funds in Bitcoin and digital assets.
- Governor Hobbs must sign the bills for them to become law.
- Arizona could invest up to 10% of its public funds in crypto.
- The move aligns with growing state and federal crypto reserve efforts.
- If approved, Arizona could lead states in adopting crypto for public finance.
Arizona has taken a historic step toward integrating cryptocurrency into its public financial strategies. On April 28, the Arizona House of Representatives passed two significant bills aimed at establishing a Bitcoin and digital assets reserve for the state. Senate Bill 1025 (SB1025), which amends existing statutes to allow for a strategic Bitcoin reserve, passed with 31 votes in favor and 25 opposed. A similar measure, Senate Bill 1373 (SB1373), designed to create a broader state-level digital assets reserve, passed with 37 votes supporting and 19 against.
🚨NEW: Arizona becomes the first U.S. state to pass a $BTC reserve bill that allows for up to 10% of public funds to be invested in virtual currencies like Bitcoin.
The bill will still need to pass Democratic Governor Katie Hobbs’ desk in order to be signed into law. https://t.co/8lAJ1V9pop
— Eleanor Terrett (@EleanorTerrett) April 28, 2025
The legislation permits the Arizona State Treasurer to allocate up to 10% of public funds into virtual currencies such as Bitcoin. According to Representative Jeff Weninger, who advocated for SB1025, this move mirrors efforts in approximately 15 other states considering similar initiatives. Weninger explained that while the law grants permission to invest in digital assets, it does not mandate immediate action, allowing flexibility as the digital economy evolves.
Governor’s Approval Remains the Final Step
Although the passage of SB1025 and SB1373 represents a major milestone, the bills require the signature of Arizona Governor Katie Hobbs to become law. Governor Hobbs has previously indicated her intention to veto legislation not accompanied by a bipartisan funding solution to support healthcare services for individuals with disabilities. However, with recent advancements in budget discussions, the outlook for the bills may have shifted.
The strategic Bitcoin reserve would position Arizona as a leader among U.S. states in adopting cryptocurrency for public fund management. It would allow the state to invest in Bitcoin and other digital assets as part of its financial diversification strategy. This development could also encourage further institutional interest in Bitcoin, potentially influencing broader market dynamics.
Broader National Movement Toward Crypto Reserves
Arizona’s move coincides with national discussions around establishing cryptocurrency reserves at the federal level. In March, President Donald Trump signed an executive order proposing the creation of a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.” Republican lawmakers, including Wyoming Senator Cynthia Lummis, have introduced legislation aimed at allowing the federal government to hold over 1 million Bitcoins, partly through assets seized via civil or criminal forfeiture.
The BITCOIN Act is back. pic.twitter.com/WNeU6SWPj3
— Senator Cynthia Lummis (@SenLummis) March 11, 2025
The momentum behind both state and federal initiatives indicates growing recognition of digital assets within the public finance sector. If Arizona’s bills are signed into law, the state will serve as a model for other jurisdictions exploring similar cryptocurrency investment frameworks. Meanwhile, New Hampshire is advancing comparable legislation, having passed a bill in its House of Representatives that is awaiting a Senate floor vote.
