Arizona is set to become the first US state to officially incorporate Bitcoin into its public investment strategy, after the passing of Arizona Strategic Bitcoin Reserve Act by the state legislature.
Arizona’s Bitcoin Reserve Bill
The bill, backed by Republican lawmakers Senator Wendy Rogers and Representative Jeff Weninger, allows the state treasurer and retirement system to invest up to 10% of available funds in Bitcoin and other digital assets. The bill now is moved for the approval from Democratic Governor Katie Hobbs.
If it is signed into law, Arizona would lead the US in requiring public funds to hold Bitcoin.
The move reflects an ongoing trend across the US, wherein several other states, including Iowa, Missouri, Texas, and New Hampshire, are exploring similar legislation. In New Hampshire, House Bill 302 recently passed its second Senate committee with a 4-1 vote after previously clearing the House. If the full Senate approves the measure and it is signed by the governor, the New Hampshire treasury would also be authorized to allocate up to 10% of general funds into cryptocurrencies with market capitalizations over $500 billion, which is currently a threshold met only by Bitcoin.
At the federal level, the pace for Bitcoin’s inclusion is picking up. In March, President Donald Trump signed an executive order that established a national strategic Bitcoin reserve and digital asset stockpile, further legitimizing Bitcoin as a potential hedge or reserve asset at the governmental level. This legislative move aligns with the growing mainstream and institutional adoption of Bitcoin, as large asset managers have started to include BTC in portfolio strategies. For instance, BlackRock, the world’s largest asset manager, suggested that investors should allocate 1% to 2% of their portfolios to Bitcoin, on the other hand, Fidelity suggested a slightly more aggressive range of 2% to 5%.
Bitcoin’s market performance, too, continues to reflect this institutional transition. As of now, Bitcoin is trading at $95,224.66, which is a 1.26% increase in the past 24 hours. Its market cap has surged to $1.88 trillion, and 24 hour trading volume has gone up by over 77%, reaching $32.65 billion.
Also Read: Samson Mow Pushes Japan Toward Bitcoin Reserve—Will Gov’t Say Yes?
