These bills have passed in the legislature but still require the signature of Governor Katie Hobbs (Democrat) to take effect. In addition to Arizona, similar legislation is also being advanced in the USA states of Texas, Florida, and New Hampshire.
On Monday local time, the legislative Institutions of Arizona in the USA passed a bill allowing up to 10% of public funds to be invested in Bitcoin and digital Assets. If signed by the governor, this initiative will make Arizona the first state in the USA to officially establish a Bitcoin reserve.
The Arizona House of Representatives passed two key bills on April 28, aimed at establishing Bitcoin and digital asset reserves for the state:
The first bill—Senate Bill 1025 (SB1025)—modifies existing laws to allow the establishment of a strategic Bitcoin reserve, passing with 31 votes in favor and 25 against.
The second bill—Senate Bill 1373 (SB1373)—aims to create a broader state-level digital asset reserve, passing with 37 votes in favor and 19 against.
These two bills would authorize the Arizona Treasurer to allocate up to 10% of public funds to virtual currencies such as Bitcoin. Representative Jeff Weninger stated in defense of SB1025 that this move aligns with around 15 other states nationwide that are considering similar initiatives.
Although these bills have passed in the Arizona legislature, they still require the signature of Governor Katie Hobbs (Democrat) to take effect. Notably, Hobbs had previously threatened to veto all legislation unless funding for Medical Services for people with disabilities was addressed, but she withdrew this blanket veto threat after a bipartisan agreement was reached on April 24.
It is noteworthy that while these bills allow investment in digital assets, they do not require immediate action. SB1373 also authorizes the use of seized cryptos and future allocations to establish reserves, incorporating on-chain auditability and standard risk controls.
Arizona's initiatives are in sync with discussions at the national level in the USA regarding the establishment of MMF reserves. In March of this year, President Trump signed an executive order proposing the creation of a 'Global Strategy Bitcoin Reserve' and 'Digital Assets Reserve.' Republican lawmakers, including Senator Cynthia Lummis from Wyoming, have introduced legislation aimed at allowing the federal government to Hold over 1 million Bitcoins, some of which would be acquired through civil or criminal forfeiture of Assets.
Meanwhile, Texas, Florida, and New Hampshire are also advancing similar legislation, with interest growing among states in integrating Cryptos into public finance strategies.
Following the vote in Arizona, Bitcoin surged in response, with the current trading price nearing $95,000, up 25% from the low of early April.
Editor/rice
