Arizona Passes Bitcoin Reserve Bill, Allowing Up to 10% of Public Funds to Be Invested in BTC

Arizona is making moves in the crypto space, passing a Bitcoin reserve bill that could allow up to 10% of public funds to be invested in virtual currencies

Arizona has taken a significant step in the crypto space, passing a Bitcoin reserve bill that could see up to 10% of public funds invested in virtual currencies like BTC. If signed into law by Governor Katie Hobbs, it would mark a major shift in how states handle digital assets.

The bill, SB1025, was passed by the Arizona House on Friday, April 28. It permits a portion of the state’s public funds to be allocated in Bitcoin, with a maximum limit of 10% of these reserves invested in digital assets.

Traditionally, state funds are held in cash, bonds, or other conservative investments. However, this bill introduces Bitcoin as a potential treasury asset, signaling a shift toward incorporating crypto into state-level financial strategies.

This is also a step forward in the idea of Bitcoin as an inflation hedge. As more institutions and states continue to adopt the currency, it continues the narrative of Bitcoin evolving into a legitimate treasury asset rather than just a speculative investment.

Those in favor of the bill, including members of the Arizona State Senate, see this as a smart hedge—Bitcoin’s scarcity and decentralization make it attractive as a long-term reserve asset, much like gold.

However, before this becomes reality, Governor Hobbs has to sign it off. Her stance on state-backed Bitcoin investments isn’t clear yet, and whether she greenlights the bill or shuts it down remains to be seen.