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Arizona Passes Bill To Create Strategic Bitcoin Reserve – Crypto News

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Arizona Passes Bill To Create Strategic Bitcoin Reserve

Arizona has moved closer to establishing the first Bitcoin reserve at the state level in the United States. Lawmakers passed two key bills allowing up to 10% of public funds to be invested in Bitcoin and other digital assets. The bills now await the signature of Governor Katie Hobbs to become law.

Arizona Legislature Advances Bitcoin Reserve Bills

On April 28, the Arizona House of Representatives voted on Senate Bill 1025 (SB1025) and Senate Bill 1373 (SB1373). SB1025, which amends state statutes to permit a strategic Bitcoin reserve, passed with 31 votes in favor and 25 against. SB1373, which proposes a broader digital asset reserve, passed with 37 votes in favor and 19 opposed.

State Representative Jeff Weninger explained that the bill provides authority to invest up to 10% of public funds in Bitcoin and potentially other cryptocurrencies. “I think this probably would start as a ‘may’ for the foreseeable future,” Weninger said during discussions.

Arizona’s bills place it ahead of several other U.S. states considering similar legislation. If signed into law, Arizona could become the first state to formally hold Bitcoin as a strategic asset despite criticism from economists like Peter Schiff.

Governor’s Decision Will Determine Final Outcome

Democrat Governor Katie Hobbs has earlier on declared her position as being against any bill signing until a solution on disability funding was reached by the two chambers. Nevertheless, with the recent development on the funding legislation, she has been under pressure to pass the Bitcoin reserve bills.

According to Dennis Porter, the CEO of the Satoshi Action Fund, the American voters should convince their leaders to hold strategic Bitcoin reserves. Porter underlined the need to continue the process as the legislations have passed through different legislative processes.

A decision from Governor Hobbs will be necessary for the legalization of Bitcoin in managing and investing the state’s funds in Arizona. Some pundits explain that investing in Bitcoin offers protection from inflation and other macroeconomic factors.

Elsewhere, the Chairman of the Swiss National Bank, Martin Schlegel said that Switzerland will not invest in Bitcoin as a reserve currency. Schlegel provided a number of arguments against the use of Bitcoin for long-term reserves, including crisis-related liquidity issues and high volatility.

Global Trends on Government Bitcoin Holdings

Arizona’s legislative push comes at a time when global government Bitcoin holdings are declining. According to a CoinGecko report published in April 2025, governments’ collective Bitcoin reserves dropped from 529,591 BTC in July 2024 to 463,741 BTC.

The U.S. remains the largest government holder with 198,012 BTC, despite recent asset liquidations. China follows with 194,000 BTC, primarily from the 2019 PlusToken Ponzi scheme seizures. The United Kingdom holds around 61,000 BTC, mostly acquired through criminal seizures, while Bhutan has mined its way to 8,594 BTC.

El Salvador continues its Bitcoin accumulation policy under President Nayib Bukele. The country now holds 6,135 BTC, with Bukele announcing daily purchases of Bitcoin for the national reserve.

Meanwhile, at the corporate level, MicroStrategy announced a new acquisition of 15,355 BTC for $1.42 billion. The company’s total Bitcoin holdings now stand at 553,555 BTC, valued at approximately $52.76 billion.

The post Arizona Passes Bill To Create Strategic Bitcoin Reserve appeared first on CoinGape.

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