Arizona Becomes the First US State to Approve a Strategic Bitcoin Reserve

Arizona has made a bold move in the world of finance, becoming the first U.S. state to pass a strategic Bitcoin reserve (SBR) bill

Arizona has become the first U.S. state to pass a strategic Bitcoin (BTC) reserve bill through both legislative chambers, setting the stage for a pivotal decision by Governor Katie Hobbs.

The bill, SB 1025, which would mandate that the state invest 10% of its annual public funds into Bitcoin, passed the House on Monday evening in a 31-25 vote. The legislation now heads to Governor Hobbs's desk, where it faces a crucial decision that could have major implications for the cryptocurrency sector and the state's economic strategy.

However, political friction could intervene. Governor Hobbs has threatened to veto any outstanding bills until lawmakers pass separate legislation on disability funding, adding a layer of complexity to the equation.

This development follows a period of intense interest in cryptocurrency at the state level, with several state-level Bitcoin bills being introduced in 2023. The aim of these bills is to position state treasurers as long-term Bitcoin holders, viewing it as a hedge against inflation and broader macroeconomic risks.

At the same time, Bitcoin advocacy groups are urging American voters to apply pressure on their state leaders to introduce and pass Bitcoin reserve bills.

"American voters need to tell their state leaders that they want to see more politicians like those in Arizona who are open to integrating Bitcoin into state finances," said Dennis Porter, CEO and Co-founder of theSatoshi Action Fund. "The Arizona model can and should be replicated in other states that are seeking to strengthen their public balance sheets and set the stage for sustained economic growth."

If Governor Hobbs approves the bill, it could set a powerful precedent for other states to follow, potentially accelerating a broader movement where states take a more proactive role in integrating digital assets into public finance. Either way, the outcome of SB 1025 is poised to become a major milestone in the evolving relationship between government institutions and decentralized technology.

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