The State-Led Bitcoin Era Has Arrived

Hey guys, welcome back to another special edition of the Now Newsletter. I am Alejandro Navia.

It feels like every week, something big happens in the world of crypto policy. Honestly, it’s becoming a whirlwind to keep up. Instead of gently flowing down a river, it feels like we’re caught in a stampede. But here’s the thing: This accelerated pace, this sense of urgency, is exactly the momentum our industry needs. In crypto, days often feel like weeks, and weeks feel like months.

This week, Arizona quietly made history. It passed groundbreaking legislation that could fundamentally shift how governments interact with Bitcoin. As someone who’s spent the past year meeting with legislators, writing op-eds, and advocating tirelessly for North Carolina to establish its own Bitcoin reserve, I can confidently tell you this isn’t just about states finding a clever workaround – it’s exactly what our system was designed for.

Given how quickly things are unfolding in crypto policy, I’ve been thinking it might be time to turn these special updates into something more regular. I’d love to hear your thoughts: should we make this a consistent conversation?

Hit reply and let me know – I’m genuinely curious.

Alright, let’s get back into the flow…

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⚖️ Bitcoin Belongs to the States

A quiet revolution is getting louder.

Earlier this week, the state of Arizona took a bold, quietly underreported step into the future of financial sovereignt

With the passage of Senate Bills 1025 and 1373, the state legislature cleared a path for the creation of a Strategic Bitcoin Reserve, authorizing the state treasurer to allocate up to 10% of Arizona’s $31.5 billion in public funds into Bitcoin and other digital assets. This is the first legislation of its kind in the United States and it may mark the beginning of a new era where state-level governments lead the charge on digital economic policy.

And it’s already spreading.

Just days later, the North Carolina House passed HB92 by a strong margin of 71–44, formally authorizing the state to explore Bitcoin as a treasury asset. Speaker Destin Hall has been instrumental in moving this bill forward, and his leadership deserves recognition.

If signed into law by Governor Hobbs, Arizona could soon hold more Bitcoin on its balance sheet than most public companies and even some countries.

Historically, reserve assets have always been a critical component of fiscal policy. Nations relied on gold, silver, and diversified currency baskets as defenses against inflation and instability. Bitcoin, scarce, decentralized, and resistant to manipulation, represents the modern evolution of these historical safeguards. It stands uniquely suited as a hedge against the unpredictable currents of global finance.

The moves by Arizona and North Carolina go beyond crypto — they’re about sovereignty and building a resilient digital future.

In essence, it’s about states stepping into the vacuum left by federal inaction.

The Founders Built It This Way

Earlier this year, President Trump signed an executive order to position America as the global leader in cryptocurrency. While such federal recognition is welcome, it is a mistake to assume a one-size-fits-all federal strategy can address the nuanced needs of all 50 states. The fiscal future of our states should not and cannot be dictated solely by Washington. State sovereignty isn’t just a relic of American history, it’s an essential mechanism allowing local governments to respond effectively to their unique economic realities.

The American system was designed for moments like this. Federalism was never meant to be a bureaucratic relic; in fact, it’s a blueprint for agility. When D.C. drags its feet, states move. From cannabis to clean energy to digital privacy, state-led innovation has always paved the way. Now, it’s happening with Bitcoin.

The digital asset space has matured. Institutions are here. The infrastructure exists. And yet, the federal government remains locked in analysis paralysis, caught between legacy interests and political caution. Meanwhile, other nations have surged ahead, treating Bitcoin not as a speculative gamble but as a sovereign asset class. Arizona, North Carolina, and the 20 other states exploring similar legislation are signaling a different path.

Why a Bitcoin Reserve Makes Strategic Sense

A Bitcoin reserve is not about going all in. It’s about allocating a small percentage of treasury capital into a provably scarce, non-sovereign asset that can hedge against inflation, currency debasement, and systemic fragility. It’s about aligning public funds with emerging technologies and sending a signal to the private sector that a state understands the digital future.

But more than that, this approach isn’t a reckless gamble; it’s prudent fiscal policy.

A strategic Bitcoin reserve not only fortifies a state’s financial health but also stimulates local economies. It attracts high-value jobs in blockchain, cybersecurity, and tech sectors, fostering innovation and resilience. Crucially, it safeguards citizens’ financial security by preserving purchasing power in an inflationary environment. States that build the infrastructure and expertise now will be better positioned to navigate the next decade of monetary and technological transformation.

In my home state of North Carolina, we have every advantage needed to lead: world-class banking infrastructure, a thriving fintech sector, and a population that’s both tech-savvy and values-driven.

But leadership doesn’t happen by default. As I’ve argued in Carolina Journal and the DC Journal, states that embrace Bitcoin strategically —through prudent reserves, innovation districts, and education — will shape the next chapter of American prosperity.

And that leadership is now underway. With Speaker Destin Hall’s bold support, the North Carolina House passed HB92, formally advancing legislation to explore a Strategic Bitcoin Reserve. This marks a turning point for the Tar Heel State. This is a clear commitment to a future-focused fiscal strategy grounded in economic resilience.

Arizona’s pioneering step is commendable. It’s grounded in constitutional clarity, fiscal prudence, and cautious optimism. Yet each state must thoughtfully tailor its Bitcoin strategy to local economic realities, accumulating reserves incrementally through careful, phased approaches that minimize risk and maximize potential.

The Torch Is Lit

The era of state-led Bitcoin policy has begun. Arizona lit the torch. North Carolina just picked it up. Now it’s up to states across America to carry the flame forward, reaffirming the timeless truth that the best governance remains close to home. In embracing decentralized digital assets, states are doing more than adapting to the future — they’re shaping it.

The only question now is: who’s next?