Arizona prepares to become the first U.S. to officially hold Bitcoin in the Treasury
The Arizona legislature has passed a groundbreaking measure that could allow the state to invest billions of dollars in Bitcoin (BTC) and other cryptocurrencies. The legislation, known as SB 1025, allows state public funds to allocate up to 10% of their custodial assets to digital assets, positioning Arizona as a leader in integrating digital assets into public finance.
The first state to invest in Bitcoin
according to For Bloomberg, the newest bill defines eligible investments as not based on any “numerical representation of value” in the US dollar or foreign currency. This broad definition is intended to cover a wide range of digital assets, including Bitcoin and Toothless Tokens (NFTS).
In addition, the legislation has established a digital asset strategic reserve fund, aiming to hold seized cryptocurrency assets and future grants. The fund will require links to auditability and standardized risk controls to ensure transparency and security in managing these investments.
Arizona’s legislative action reflects that U.S. countries, including Texas, Florida and New Hampshire, are exploring Bitcoin-backed reserve strategies. These countries are designed to attract Blockchain Innovate and diversify their public asset portfolio.
If signed into law, Arizona would become the first state in the U.S. to formally hold Bitcoin in its Treasury Department, setting an important national precedent for integrating cryptocurrencies into the public fiscal framework.
Bitcoin has traded close to $95,000 after the legislative vote, and recently recovered 25% from its monthly low in early April. This new interest among institutional investors, coupled with Arizona’s move to recognize Bitcoin as sovereignty Reserve assetshelps to have a positive market momentum.
Governor Hobbs’s Decision Loom
Arizona’s full disclosure Manage assets (AUM) As of 2025, it has exceeded US$31.4 billion. Under Senate Bill 1025, the state can allocate $3.14 billion to invest in digital assets, including Bitcoin and NFTS.
This allocation will make Arizona the second largest institutional holder of Bitcoin among public entities in the United States, surpassing well-known companies such as Tesla and Marathon Numbers, the largest Bitcoin mining company.
The legislation emphasizes that all investments in digital assets must comply with standard trust risk management programs. This requirement is intended to protect Public funds From inherent volatility and custody risks associated with cryptocurrency investment.
By prescribed high liquidity and high security tools, Arizona prioritizes the security of its public assets while risking its entry into the digital currency space.
Despite the bill passing it, Arizona Gov. Katie Hobbs has not yet shown her position on Bitcoin legislation. She eased the previous threat of veto after a recent bipartisan agreement on disability funding disputes.
But her signature on the bill is crucial. It will immediately authorize the investment allocation process Digital Assets. Instead, the veto could cease the bill and suspend all relevant budget allocations.
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