Arizona is poised to become the first US state to embed Bitcoin into its financial reserves. Just two pieces of legislation, Senate Bill 1025 and Senate Bill 1373, passed by lawmakers, allow for up to 10% of public funds – including treasury and pension assets – to be allocated to Bitcoin or other cryptocurrencies. If Governor Katie Hobbs signs these bills into law, Arizona will pioneer a new era in government finance, potentially serving as a model for future states looking to invest in digital assets. These bills detail the creation of a Strategic Bitcoin Reserve and a Digital Assets Strategic Reserve Fund to manage the state’s reserves. The Strategic Reserve Fund allows up to 10% of public funds to be allocated to crypto assets including those managed by the state treasurer, while the Digital Assets Reserve fund is seeded with seized cryptocurrency from law enforcement or forfeiture actions.