Arizona could become the first state to invest public funds in bitcoin — only the Governor’s signature is missing.
According to Bloomberg Government, on April 28 the Arizona legislature passed two bills (SB 1025 and SB 1373) that could make the state the first to integrate Bitcoin and digital assets into public financial management. The measures have now been sent to Democratic Governor Katie Hobbs’ desk for final approval.
Bill SB 1025 (Arizona Strategic Bitcoin Reserve Act), approved by a 31-25 vote, would allow the state treasurer and the Arizona pension system to invest up to 10% of available funds in bitcoin. The bill’s co-sponsors are both Republicans: Senator Wendy Rogers and Representative Jeff Weninger.
Proposal SB 1373, passed by a 37-19 vote, would establish a “Digital Asset Strategic Reserve Fund” within the state treasurer’s office. This fund would be made up of appropriated legislative money and digital assets seized and confiscated by the state. The treasurer would have the authority to use up to 10% of the fund’s total deposits per fiscal year and could lend out digital assets to generate returns, provided these actions do not increase financial risks for the state.
Governor Hobbs, who had previously threatened to veto all legislation until disability funding issues were resolved, lifted the blanket threat following a bipartisan deal reached on April 24.
Other states follow suit
Arizona isn’t alone in the race to establish a state bitcoin reserve. States like New Hampshire and Texas are considering similar proposals. At the federal level, last March President Donald Trump signed an executive order to establish a strategic bitcoin reserve and a stockpile of digital assets obtained through forfeiture.
