TL;DR
- Arizona becomes the closest U.S. state to legalizing a strategic Bitcoin reserve after passing two bills in its House of Representatives.
- Both proposals would allow the state treasurer to invest up to 10% of reserves in cryptocurrencies, primarily BTC.
- This initiative coincides with similar federal efforts led by Donald Trump and lawmakers like Senator Cynthia Lummis.
In a landmark move toward state-level crypto adoption, the Arizona House of Representatives has approved two bills that pave the way for building a financial reserve backed by cryptocurrencies, particularly Bitcoin. The bills — SB1025 and SB1373 — passed with narrow but sufficient majorities, signaling a significant shift in both financial strategy and political attitude toward digital assets in the U.S.
According to state representative Jeff Weninger, the goal is to give Arizona’s treasurer the legal ability to allocate up to 10% of the state’s reserves into crypto, starting with Bitcoin. While the bills don’t mandate immediate purchases, they lay the legal groundwork for such actions in the near future.
Bitcoin As A Strategic State Reserve
Unlike previous stalled attempts in states like Texas or Missouri, Arizona’s successful passage of both bills positions it as the leading state in the movement to adopt crypto at the public finance level. It even surpasses New Hampshire, where a similar bill has yet to reach a Senate vote.
The intention behind these bills is straightforward: protect state reserves from dollar inflation and diversify public funds using assets immune to central bank manipulation. In an era where trust in fiat currencies and monetary policies is dwindling, Bitcoin’s limited supply and decentralized nature are becoming increasingly attractive.
The Federal Movement Gains Momentum
Arizona’s move mirrors growing interest at the federal level, where President Donald Trump recently signed an executive order calling for a “Strategic Bitcoin Reserve.” Meanwhile, Senator Cynthia Lummis introduced legislation that would allow the U.S. government to hold up to 1 million BTC, partially sourced from legal seizures and forfeitures.
While Arizona Governor Katie Hobbs had previously voiced concerns about signing new bills without a bipartisan budget resolution — especially to protect healthcare funding — recent developments suggest her stance may soften in light of the political and financial momentum behind these initiatives.
This state-level move represents a clear win for cryptocurrency advocates and sends a strong signal that Bitcoin is no longer seen as a speculative risk but rather as a legitimate tool for financial strategy and resilience. Could this be the beginning of a more decentralized public economy in the United States?
