Arizona Could Allocate 10% Of Its Public Funds To Bitcoin

The Arizona Senate takes a historic step towards the institutional adoption of cryptocurrencies with the advancement of a bill allowing the state to invest up to 10% of its public funds in bitcoin. This initiative could trigger a wave of similar adoption in other U.S. states.

The Arizona Senate advances on Bitcoin reserve legislation

On January 27, 2025, the Arizona Senate Finance Committee approved the Strategic Bitcoin Reserve Act (SB1025) by a vote of five to two. Led by Senator Wendy Rogers and Representative Jeff Weninger, this bill aims to create a strategic reserve of bitcoin to allow the State Treasurer to hold and manage crypto assets.

The text stipulates that up to 10% of public funds and pension funds may be invested in bitcoin, a measure that could transform the financial management of the state.

This initiative comes as nearly 20% of Generation Z and Alpha express support for cryptocurrency pensions, and 78% prefer retirement savings alternatives to traditional pension funds, according to a report by Bitget Research published on January 16.

The expected domino effect on other U.S. states

The adoption of this law by Arizona could trigger a broader movement at the national level. According to Bitcoinlaws.io, 13 states, including Massachusetts, Pennsylvania, and Wyoming, are already studying similar bills to establish their own bitcoin reserves.

Experts, including blockchain specialist Anndy Lian, anticipate a domino effect, particularly in states like Texas, which is already favorable to this adoption.

“If your state invested a portion of your taxes in Bitcoin, it could encourage states like Texas or Pennsylvania to accelerate their own adoption,” he told Cointelegraph.

The pro-crypto policies of the Trump administration and the growing interest from institutional investors amplify this dynamic.

Anastasija Plotnikova, CEO of Fideum, believes that this legislative evolution could propel Bitcoin to new heights, with some analysts targeting $500,000. Its integration into public finances would thus mark a key milestone in its recognition as an institutional asset.

As the bill moves towards a final debate in the Senate committee, Arizona could pave the way for a new era in the management of U.S. public finances. The appointment of Senator Cynthia Lummis to head the subcommittee on digital assets reinforces this trend, thus laying the groundwork for a strategic bitcoin reserve at the federal level.