Arizona’s legislature has passed legislation that could position the state as a pioneer in Bitcoin and cryptocurrency adoption within the United States.
The bill, which authorizes the state treasurer and retirement system to allocate up to 10% of their available funds to Bitcoin and other digital assets, now awaits the approval of Governor Katie Hobbs.
This development, reported by Bloomberg Government, marks a significant milestone in the integration of cryptocurrencies into public finance, potentially setting a precedent for other states.
The legislation, comprising Senate Bill 1025 (SB 1025) and Senate Bill 1373 (SB 1373), was approved by the Arizona House of Representatives on April 28, 2025, with votes of 31–25 and 37–19, respectively.
SB 1025, known as the Arizona Strategic Bitcoin Reserve Act, focuses specifically on enabling investments in Bitcoin, while SB 1373 establishes a broader Digital Assets Strategic Reserve Fund, incorporating seized crypto assets and state-allocated funds.
Both bills aim to modernize Arizona’s financial strategy by diversifying its reserves and hedging against inflation, leveraging Bitcoin’s decentralized nature and fixed supply.
Proponents of the bills argue that embracing Bitcoin could position Arizona at the forefront of financial innovation.
They highlight the cryptocurrency’s potential to protect against currency devaluation amid rising national debt concerns.
State Representative Jeff Weninger, a co-sponsor of SB 1025, emphasized that the legislation provides a cautious approach, allowing but not mandating investments in digital assets.
Supporters also point to the growing institutional interest in Bitcoin, with its price climbing to around $95,000 following the legislative votes, reflecting renewed market confidence.
However, the bills face significant hurdles.
Governor Hobbs has not yet indicated her stance on the legislation, and her recent pledge to veto all bills until the state resolves a budget stalemate, particularly regarding disability funding, casts uncertainty over their fate.
Hobbs’ firm stance was evident when she vetoed 15 bills in a single week, signaling her prioritization of budgetary concerns.
Critics of the legislation warn of Bitcoin’s volatility, noting that its price fluctuations could expose public funds to substantial risks, potentially jeopardizing pension and treasury assets.
Arizona’s initiative is part of a broader national trend, with states like Texas, Utah, and New Hampshire also exploring Bitcoin reserve legislation.
Arizona’s progress, however, places it ahead in the race to become the first state to officially integrate Bitcoin into its fiscal framework.
The bills’ passage through both legislative chambers, largely along party lines, underscores the polarized views on cryptocurrency’s role in public finance.
As Governor Hobbs deliberates, the decision could possibly have far-reaching implications.
Approval would cement Arizona’s role in cryptocurrency adoption, potentially influencing federal policies and encouraging other states to follow suit.
Conversely, a veto could delay these efforts, potentially forcing lawmakers to seek overrides or revisit the issue in future sessions.