Arizona Advances Bills for Crypto Reserve Fund

Arizona's legislature has passed two bills, SB1025 and SB1373, to potentially allow up to 10% of public funds to be invested in Bitcoin and other digital assets, pending Governor Katie Hobbs' signature. The legislation establishes a Digital Assets Strategic Reserve Fund that will be funded by both seized crypto holdings and new allocations, and it mandates on-chain auditability and specific risk controls. The passage of the bills triggered a surge in Bitcoin prices and trading volume, with market observers viewing this as a significant step for institutional crypto adoption. Supporters believe the law could diversify state assets and hedge against inflation, while critics cite the volatility of Bitcoin and the absence of federal regulation. Governor Hobbs has ended a prior blanket veto threat but has not indicated her position on these bills, leaving their fate uncertain. If signed into law, Arizona could set a national precedent and serve as a model for other states' public finance strategies involving cryptocurrencies.