Arizona is poised to become the first U.S. state to integrate cryptocurrency into its investment strategy, thanks to two recently passed bills. If Governor Katie Hobbs signs these laws, Arizona will set a national precedent for embracing digital assets at the state level. Senate Bill 1025, known as the Arizona Strategic Bitcoin Reserve Act, was approved by the Arizona House of Representatives on Monday with a majority vote (31-25-4). This bill allows the state to invest up to 10% of public funds – including those from the pension and treasury systems – in Bitcoin. SB1373, also passed by the House, establishes a Digital Asset Strategic Reserve Fund that can hold multiple cryptocurrencies, stablecoins, and even NFTs. This fund will also store digital assets seized from criminal cases. The bills previously passed the Arizona Senate before being sent directly to Governor Hobbs for final approval, with no changes made. However, Governor Hobbs has stated her intention to veto all bills until a bipartisan solution is reached on funding healthcare for people with disabilities in Arizona. This move follows a series of 15 vetoes issued last week. The governor has emphasized the urgency of addressing this issue and called for a return to normal operations. SB1025 encourages potential involvement in a future federal Bitcoin reserve, while SB1373 ensures continuous funding beyond traditional fiscal year boundaries and establishes guidelines for handling digital assets like seized cryptocurrencies. The outcome of Governor Hobbs’ decision on whether to sign or veto these bills will determine if Arizona leads the nation in embracing state-level investment in digital assets.