- Arizona Legislature passed SB 1025 to invest 10% of annual public funds in Bitcoin as an inflation hedge.
- Arizona House approved SB 1025 with 31-25 vote; Governor Hobbs must decide by May 15, 2025.
- Bitcoin price rose 1% to $94.5K, with potential to surpass $99K resistance amid growing demand.
The Arizona Legislature passed a bill on Monday directing the state to allocate 10 percent of its annual public funds to Bitcoin. The measure, labeled SB 1025, cleared the House with 31 votes in favor and 25 against. If signed by Governor Katie Hobbs, Arizona would become the first U.S. state to formally adopt Bitcoin as a reserve asset to hedge against inflation and economic instability.
Governor Hobbs, a Democrat, previously threatened to veto all pending legislation until lawmakers passed a separate bill addressing disability funding. This stance has delayed final approval of the Bitcoin reserve proposal. Dennis Porter, CEO of the Satoshi Action Fund, urged supporters to contact elected officials and expedite the bill’s implementation.
SIGN UP TO VOLUNTEER AND HELP US GET SBR ACROSS THE FINISH LINE: https://t.co/98Yo8pAaHj
— Dennis Porter (@Dennis_Porter_) April 28, 2025
The bill’s supporters argue that Bitcoin’s limited supply makes it a viable safeguard against currency devaluation. Critics cite concerns over price volatility and the logistical challenges of managing a cryptocurrency reserve.
Bitcoin’s price rose approximately 1 percent following the bill’s passage, trading near $94,500. Analysts suggest sustained demand from large investors could push prices above the $95,000 to $99,000 resistance range in coming weeks.
The move has sparked debate in other states considering similar measures. President Donald Trump’s administration has publicly endorsed policies favoring Bitcoin adoption, adding momentum to legislative efforts nationwide.
Arizona’s treasury would purchase Bitcoin through regulated exchanges, storing it in secure custodial wallets. The state plans to adjust its holdings based on market conditions and budgetary requirements. Proponents emphasize transparency in reporting purchases and sales to maintain public trust.
Here was the final vote. pic.twitter.com/b31HVHnRiw
— Jeff Weninger (@JeffWeninger) April 28, 2025
Governor Hobbs has until May 15 to sign or veto the bill. If enacted, Arizona’s experiment could influence federal discussions on cryptocurrency’s role in public finance.
