Arizona becomes the first U.S. state to approve legislation creating a Strategic Bitcoin Reserve. The state legislature passed Senate Bill 1025 allowing the treasury to invest up to 10% of public funds in Bitcoin. The bill sponsored by Republican Senator Wendy Rogers positions Arizona as a pioneer in cryptocurrency adoption ahead of states like Texas and New Hampshire.

Supporters argue a Bitcoin reserve can protect Arizona’s economy against inflation by diversifying assets. Bitcoin’s fixed supply and decentralized nature offer significant advantages over traditional currency. The companion measure SB1373 also passed allowing the state treasurer to manage digital assets seized in criminal cases further embracing blockchain technology.

Both bills however now await Governor Katie Hobbs’ decision. Hobbs previously vowed to veto legislation until the legislature addresses a healthcare funding shortfall. Despite uncertainty Arizona’s groundbreaking step toward embracing Bitcoin could set a national example if it successfully overcomes political hurdles.