Hold the freaking phone, people! Arizona just made a HUGE move. The state House has passed SB 1025 and SB 1373, bills that basically give the green light for the state to officially hoard and invest in Bitcoin. Yes, you read that right. Bitcoin. Not beanie babies, not tulips, Bitcoin!
These bills are now heading to Governor Katie Hobbs’ desk – let’s hope she’s not a dinosaur. SB 1373 proposes a ‘Digital Asset Strategic Reserve Fund’ managed by the State Treasurer. Think seized assets and legislative allocations fueling this bad boy, with a potential for up to 10% of the fund to be sunk into BTC annually. And get this – they’re even talking about lending it out, all without increasing risk. (We’ll see about that, right?)
SB 1025 goes even further, allowing both state treasury and retirement systems to throw up to 10% of available funds into virtual currencies, with a clear emphasis on Bitcoin. This isn’t just dipping a toe in the water, folks. This is a proper commitment.
Let’s unpack that a little, because this is important.
Digital asset strategic reserves are essentially a government-controlled holding of crypto, aiming to diversify public funds and potentially generate returns. It’s a growing trend, but Arizona is pushing hard.
State treasurers, traditionally focused on bonds and stocks, are now being empowered to explore more volatile, yet potentially rewarding, assets like Bitcoin.
The 10% investment cap is strategic. It allows exposure without over-exposing taxpayers to extreme market fluctuations. Prudent…ish.
Lending out Bitcoin sounds wild, but it’s about maximizing returns through decentralized finance (DeFi). It’s risky, sure, but it’s also innovative.
This is a massive win for Bitcoin adoption. When states start taking this seriously, it sends a powerful signal to the rest of the world. Arizona, you’re doing the Lord’s work! Now, let’s see if Governor Hobbs gets on board.
