Isabella García
In a historic move, Arizona lawmakers have approved legislation that would allow the state to allocate up to 10% of its treasury and retirement funds into Bitcoin and other digital assets, marking a potential shift in how public finances are managed in the digital age.
The proposed legislation, titled the Arizona Strategic Bitcoin Reserve Act, was passed by the state legislature earlier this week and is now awaiting the final signature from Governor Katie Hobbs, according to a report by Bloomberg Government.
A Bold Step Toward Crypto Integration in State Finance
According to the bill’s summary, this initiative reflects a new wave of governmental adoption of cryptocurrencies, signaling a broader shift toward recognizing Bitcoin as a legitimate store of value in public sector investment portfolios.
Republican lawmakers Sen. Wendy Rogers and Rep. Jeff Weninger co-sponsored the bill. If signed into law, Arizona would become the first U.S. state to mandate Bitcoin holdings within its public financial system.
Other States and Federal Actions Hint at a Broader Trend
Arizona isn’t alone in exploring cryptocurrency reserves. Iowa, Missouri, and Texas are reportedly evaluating similar policies. Meanwhile, on the federal level, President Donald Trump signed an executive order in March to establish a national strategic reserve of Bitcoin and digital assets, underscoring the increasing relevance of crypto in government strategies.
Asset Managers Recommend Bitcoin Allocation in Traditional Portfolios
Leading asset management firms have also weighed in on the subject. BlackRock suggested allocating 1% to 2% of portfolios to Bitcoin, while Fidelity has advocated for a higher range, between 2% and 5%, as part of a balanced investment strategy, according to Business Insider.
