Arizona’s treasurer and retirement system could invest billions of dollars in cryptocurrency under a first-in-the-nation measure the state Legislature passed Monday.

The legislation (S.B. 1025) would allow state public funds to invest as much as 10% of the money they control in virtual currencies. The bill’s definition would cover a “digital representation of value” that isn’t based on the US dollar or foreign currency.

The Arizona measure heads to Gov. Katie Hobbs (D) for consideration. Her office did not immediately respond to a request for comment. Hobbs frequently vetoes measures approved by the Republican-led Legislature.

Passage of the …