Arizona Takes Historic Step Toward Integrating Cryptocurrency into Public Finances by Passing Bitcoin Reserve Bills

Arizona has taken a historic step toward integrating cryptocurrency into its public financial strategies. On April 28, the Arizona House of Representatives passed two significant bills aimed at establishing a Bitcoin and digital assets reserve for the state.

Arizona has become the first U.S. state to pass a bill that would allow for a Bitcoin reserve and open the door for broader digital asset investment in state public funds.

Both measures, which still require the signature of Democratic Governor Katie Hobbs, passed the state House of Representatives on Friday.

SB1025, which amends existing statutes to allow for a strategic Bitcoin reserve, passed with 31 votes in favor and 25 opposed. A similar measure, SB1373, designed to create a broader state-level digital assets reserve, passed with 37 votes supporting and 19 against.

The legislation would permit the Arizona State Treasurer to allocate up to 10% of public funds into virtual currencies such as Bitcoin.

Representative Jeff Weninger, who sponsored SB1025, noted that approximately 15 other states are considering similar initiatives to diversify public funds into cryptocurrencies.

“This doesn’t force the state to go out and invest in any digital assets; it gives the state the option to do so as we move into this evolving digital age,” Weninger said.

Governor’s Approval Remains the Final Step

The passage of SB1025 and SB1373 marks a significant milestone in Arizona's integration of cryptocurrency into its public financial strategies. However, the bills still require the signature of Governor Hobbs to become law.

Governor Hobbs has previously stated her intention to veto any legislation not accompanied by a bipartisan funding solution to support healthcare services for individuals with disabilities. Nevertheless, recent advancements in budget discussions may influence her stance on the bills.

This development would position Arizona as a leader among U.S. states in adopting cryptocurrency for public fund management. The state would be able to invest in Bitcoin and other digital assets as part of its financial diversification strategy.

It could also spur further institutional interest in Bitcoin, potentially impacting broader market dynamics.

Broader National Movement Toward Crypto Reserves

Arizona's move comes amid broader national discussions around establishing cryptocurrency reserves at the federal level.

In March, President Donald Trump signed an executive order proposing the creation of a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.”

Republican lawmakers, including Wyoming Senator Cynthia Lummis, have introduced legislation aimed at allowing the federal government to hold over 1 million Bitcoins, partly through assets seized via civil or criminal forfeiture.

The BITCOIN Act is back.

This bill would mandate the U.S. to begin a balanced acquisition of BTC through Treasury and over 1M BTC in 10 years! It would also allow for BTC to be seized as part of civil or criminal forfeiture. https://t.co/pK6l8D8e8Z

— Senator Cynthia Lummis (@SenLummis) March 11, 2025

The bipartisan momentum behind both state and federal initiatives reflects a growing recognition of digital assets within the public finance sector.

If Arizona's bills are signed into law, the state will serve as a model for other jurisdictions exploring similar cryptocurrency investment frameworks.

Meanwhile, New Hampshire is advancing comparable legislation, having passed a bill in its House of Representatives that is awaiting a Senate floor vote.

The post U.S.: Arizona becomes first state to pass bill allowing Bitcoin reserve in public funds appeared first on Chain Teller.