Arizona has historically become the first U.S. state to pass legislation creating a Strategic Bitcoin Reserve, signaling a bold step toward embracing cryptocurrency in public finance. The landmark decision could reshape state treasuries and trigger a nationwide trend, despite debates over Bitcoin’s volatility.
Arizona’s Legislative Journey
Arizona’s path to this milestone began in early 2025 with two key bills, Senate Bill 1373 (Strategic Digital Assets Reserve Bill) and Senate Bill 1025 (Arizona Strategic Bitcoin Reserve Act). Introduced by Republican Senators Mark Finchem and Wendy Rogers, the bills aim to allow the state treasury to invest up to 10% of public funds in Bitcoin and other digital assets, including seized cryptocurrencies.
The legislative process saw steady progress, starting with approval by the Senate Finance Committee in January 2025. By March, both bills cleared the House Commerce and Rules Committees, with SB 1373 passing the House Committee of the Whole in April. On April 28, 2025, both chambers approved the measure in party-line votes, making Arizona the first state to greenlight a Bitcoin reserve.
Supporters like Dennis Porter of the Satoshi Action Fund hailed the move as a hedge against national debt. However, Governor Katie Hobbs, known for vetoing 73 bills in 2024, has yet to sign. Her decision, expected soon, will determine if Arizona officially integrates Bitcoin into its fiscal strategy, amidst her concerns over unrelated budget disputes.
Will Arizona’s Move Trigger a Trend?
Arizona’s leap forward outpaces other U.S. states that are considering similar measures. Texas passed a Bitcoin reserve bill in its Senate in March 2025, but it awaits House approval and faces debate over a proposed $250 million cap. New Hampshire’s House advanced a similar bill, while Oklahoma’s effort failed in a Senate vote.
However, critics, including economist Peter Schiff, warn that Bitcoin’s price swings could risk state funds, and Switzerland’s National Bank Chairman Martin Schlegel rejected Bitcoin for reserves due to volatility. Globally, El Salvador has embraced Bitcoin as legal tender since 2021, holding it in national reserves, while Russia has explored crypto for international trade to bypass sanctions.
These examples highlight a growing, yet cautious, global interest in digital assets. Arizona’s move could inspire other states across the U.S., but opposition underscores the need for strong risk management as states navigate this maiden financial frontier.
