Arizona Moves Closer to Becoming First US State to Legally Reserve Bitcoin
Arizona is taking a major step toward legalizing Bitcoin as a public reserve. Two bills, SB1025 and SB1373, have just passed the state legislature by a wide margin and are now awaiting Governor Katie Hobbs’ signature to become law.
If passed, Arizona would become the first state in the US to legalize the use of public funds to invest in Bitcoin or other digital assets, with a cap of up to 10% of the budget.
A Milestone in the Race to Reserve Bitcoin at the State Level
The passage of these bills marks a major milestone in states’ efforts to embrace digital assets as part of their public finance strategy. While several states, including Texas and New Hampshire, are considering similar bills, Arizona is currently the state with the highest likelihood of becoming law soon.
SB1025 has attracted particular attention for its explicit proposal to invest in Bitcoin, which has previously been met with resistance from conservative financial groups. In the February session, several proposals across the country had the potential to trigger more than $23 billion in BTC investment, but stalled due to budgetary concerns.
Growing Support from the Community and Market
The crypto community has been excited by the news that Arizona is moving closer to establishing a Bitcoin Reserve. If passed, it would be a clear signal that local governments in the US are embracing Bitcoin not only as a means of personal investment, but also as part of the public financial system.
However, there are also concerns that the 10% spending limit will stifle the long-term growth potential of these reserves. Still, with many countries liquidating Bitcoin — including Germany, Ukraine, and the United States — any positive action from the government is seen as a win for the industry.
Governor Katie Hobbs’s Key Role
It all comes down to Governor Katie Hobbs’ decision. After vetoing several bills related to social funding, Hobbs recently ended the impasse, paving the way for bills like SB1025 and SB1373 to be considered.
If Hobbs signs it, not only will Arizona enter the digital financial era, but it could also set a precedent for other states to do the same, boosting demand and confidence in Bitcoin across the US market.
With the supply of Bitcoin held by governments around the world on a downward trend, Arizona’s move could be a rare bright spot that spurs a new wave of accumulation from the public sector.