Arizona has made a bold move in the world of finance, becoming the first U.S. state to pass a strategic Bitcoin reserve (SBR) bill through both legislative chambers.
On Monday evening, the Arizona House of Representatives approved Bill SB 1025 by a narrow margin, voting 31 in favor and 25 against. The bill mandates that the state invest 10% of its annual public funds into Bitcoin, positioning it as a safeguard against inflation and broader macroeconomic risks.
The legislation now sits on the desk of Governor Katie Hobbs, awaiting her final signature. Yet political hurdles remain. Hobbs, a Democrat, has previously threatened to veto any outstanding bills until lawmakers pass separate legislation on disability funding. This standoff injects a layer of uncertainty into Arizona’s Bitcoin strategy, even as momentum for digital asset adoption grows.
Supporters argue that holding Bitcoin will future-proof Arizona’s financial reserves against the erosion of purchasing power and volatility in traditional markets. They see it as a way for states to diversify beyond bonds and fiat-based instruments, especially at a time when concerns over national debt, monetary policy, and economic slowdown are mounting.
Meanwhile, Bitcoin advocacy groups are seizing the moment. Dennis Porter, CEO and Co-founder of the Satoshi Action Fund, has urged American voters to pressure their state leaders into embracing Bitcoin reserve initiatives. He stressed that the Arizona model could become a blueprint for other states seeking alternative ways to strengthen their public balance sheets.
If Governor Hobbs approves the bill, Arizona could set a powerful precedent, accelerating a broader movement where states take a more proactive role in integrating digital assets into public finance. Either way, the outcome of SB 1025 is poised to become a major milestone in the evolving relationship between government institutions and decentralized technology.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/this-us-state-becomes-first-to-approve-a-strategic-bitcoin-reserve/