Arizona Approves 10% Bitcoin Reserve in State Treasury

Arizona has taken a pioneering step in the realm of digital assets by becoming the first state in the United States to approve legislation that establishes a strategic Bitcoin reserve. The two bills, SB1373 and SB1025, sponsored by Senator Wendy Rogers and State Representative Jeff Weninger, were passed by both the House of Representatives and the Senate after months of advocacy and debate. These bills aim to allow the state to invest up to 10% of its treasury and pension assets in Bitcoin and other cryptocurrencies, marking a significant shift in government investment strategies and promoting the broader adoption of digital assets.

The legislation, now awaiting Governor Katie Hobbs’ signature, includes provisions that authorize the use of seized crypto assets and future appropriations to build the reserve. The bills also incorporate on-chain auditability and standard risk controls, ensuring transparency and security in the management of these digital assets. This move by Arizona mirrors similar legislative efforts underway in other states, such as Texas, Florida, and New Hampshire, indicating a growing trend towards the integration of cryptocurrencies into state financial systems.

The passage of these bills is seen as a potential catalyst for other states to follow suit, setting a precedent for state-level investment in cryptocurrencies. Proponents of the legislation, including the co-founder of Satoshi Act Fund, Dennis Porte, believe that Arizona's move could pave the way for other states to adopt similar policies. This development is expected to further integrate cryptocurrencies into the U.S. financial system, potentially driving mainstream acceptance and usage.

The vote comes at a time when Bitcoin is showing signs of recovery, although specific price movements and market values were not detailed in the news. The bills' passage is seen as a significant milestone for Bitcoin, as it would be the first instance of a U.S. state including Bitcoin as an official component of its government treasury and retirement systems. This move is anticipated to stimulate further discussion and potential action in other states, as they consider the benefits and risks of investing in digital assets.

The strategic Bitcoin reserve bill faced its final vote on April 28, 2025, and its approval has sparked considerable interest and activity within the cryptocurrency community. The legislation's success is expected to have a ripple effect, encouraging other states to explore similar investment strategies and potentially leading to a more widespread adoption of cryptocurrencies in government finance. The bills' passage underscores the growing acceptance of digital assets as a viable investment option, reflecting a broader shift in financial policies towards embracing technological innovation.