Key Takeaways
- The legislation allows for up to 10% of treasury and pension assets to be allocated to digital assets
- Both bills now await action from Governor Katie Hobbs
Arizona is poised to become the first U.S. state to establish a Bitcoin reserve, following the passage of two crypto-related bills in the state legislature. The House of Representatives has approved Senate Bill 1025 and Senate Bill 1373, both sponsored by Republican Senator Wendy Rogers.
SB 1025 would authorize the state treasury to invest a portion of public funds in Bitcoin, categorizing these investments as digital currency holdings within the state’s portfolio. Under the bill, such investments would remain subject to existing state regulations governing public fund management.
The House passed the bill with a 29–25 vote. The Senate cleared the measure 31–25, with four lawmakers recorded as not voting. No members were excused or absent during either vote.
Senate Bill 1373, passed alongside SB 1025, establishes a Digital Assets Strategic Reserve Fund. The fund would be built using a combination of seized cryptocurrency assets and future appropriations. It incorporates provisions for on-chain auditability and requires compliance with risk control standards.
According to the text summary of SB 1025, “This bill represents an emerging approach by a state government to integrate cryptocurrency into public financial management, reflecting the growing mainstream acceptance of digital assets.”
The legislation allows for up to 10% of treasury and pension assets to be allocated to digital assets, including Bitcoin. Both bills now await action from Governor Katie Hobbs. While Hobbs has not issued a specific statement on the Bitcoin reserve proposals, she has pledged to veto all legislation until lawmakers pass a new state budget.
States including Missouri, Texas and Iowa are also looking to set up a strategic notcoin reserve. The latest push towards bitcoin reserves comes a month after US President Donald Trump signed an executive order establishing a government reserve of bitcoin
