Arizona Breaks Ground with First U.S. Bitcoin Reserve—Wall Street Already Side-Eyeing the Move

Arizona just fired the starting gun in the race for state-backed Bitcoin reserves—while traditional finance clutches its pearls. Who stands to win? Crypto natives, local businesses, and maybe even taxpayers (if politicians don’t botch the execution).

Miners cheer, skeptics sneer: The ‘digital gold rush’ gets a government stamp of approval. Meanwhile, your 401(k) still thinks blockchain is a type of bike lock.

Final thought: When the next bull run hits, Arizona’s treasury might moon faster than your altcoin portfolio.

Arizona greenlights Bitcoin Reserve

On the 22nd of April, the Arizona House advanced Senate Bill 1025 — formally titled the “Arizona Strategic Bitcoin Reserve Act”- in a narrow 31-25-4 vote.

As expected, this legislation laid the groundwork for the state to begin treating Bitcoin [BTC] as a strategic investment asset.

Accompanying it is Senate Bill 1373, passed the same day with a 37-19-4 vote, which proposes the creation of a “Digital Assets Strategic Reserve Fund” to support broader digital asset management.

For those unaware, both bills had already cleared the Arizona Senate on the 27th of February and now head to Governor Katie Hobbs’ desk for final approval.

Remarking on the same, State Representative Jeff Weninger on SB1025 said,

“This bill basically takes the approach that probably 15 other states are considering the same legislation nationwide that allows the treasurer to invest up to 10% into, probably mainly Bitcoin but other things as well.”

He added,

“I think this probably would start as a ‘may’ for the foreseeable future, but as things continue to pivot towards Bitcoin and these things, would have that already in place in the future.”

Challenges ahead

However, while Arizona edges closer to making history with its proposed Bitcoin reserve, the final step hinges on Governor Katie Hobbs’ approval.

Governor Katie Hobbs had previously stated on the 17th of April that she would veto any bill unless legislators presented a bipartisan funding plan to safeguard healthcare for Arizonians with disabilities.

This firm stance put many pending proposals in uncertainty. However, with new legislation clearing both chambers on the 24th of April, the political climate may be shifting.

This recent progress could signal a softening of the governor’s position, potentially increasing the likelihood that SB1025 and SB1373 — Arizona’s proposed crypto reserve bills—receive her signature and become law.

Henceforth, if signed into law, Arizona would officially become the first U.S. state to establish a Bitcoin reserve, surpassing other states that have recently explored similar initiatives.

Other states and their status on Bitcoin Reserve

Notably, New Hampshire is also making strides — its House Bill 302 advanced to a full Senate vote last week after clearing a second Senate committee with a 4-1 vote.

As momentum builds, industry experts like Mathew Sigel, VanEck’s Head of Research, predict that if around 20 state-level Bitcoin reserve bills were to pass nationwide, they could collectively drive over $23 billion in new demand for Bitcoin, potentially reshaping the future of state treasury strategies.

Sigel put it best when he stated,

“If enacted, they could drive $23 billion in buying, or 247k BTC. This sum is independent of any pension fund allocations, likely to rise if legislators move forward.”

Polymarket trend and Bitcoin’s price

However, despite growing interest in state-level Bitcoin reserves, market sentiment around federal action remains skeptical.

According to Polymarket data, the probability of former President Trump establishing a Bitcoin reserve within his first 100 days has dropped sharply to just 2%.

This cautious outlook comes even as Bitcoin continues its upward momentum, recently trading at $94,773.14 after a modest 0.14% gain in the past 24 hours, according to CoinMarketCap.