- Arizona’s legislature approves Bitcoin reserve bills, signaling a major shift toward crypto adoption despite Governor Hobbs’ veto threat.
- Arizona may soon invest up to 10% of public funds in digital assets like Bitcoin, positioning itself as a U.S. crypto finance leader.
- The Arizona bills reflect growing national momentum for Bitcoin reserves, aligning with Trump’s executive order and Lummis’s crypto push.
Arizona is about to become the first state in the United States to create a Bitcoin reserve with public funds, according to Ellearnor Terrett. Senate Bill 1025 (SB1025), a daring plan to permit the state treasurer to invest up to 10% of public cash in virtual currencies like Bitcoin, was approved by Arizona House members on April 28.
Arizona’s commitment to investigating digital asset methods was further cemented when a similar bill, SB1373, likewise received majority approval. But in order to become law, both legislation need to be approved by Democratic Governor Katie Hobbs. Despite increasing parliamentary support, her latest remarks raise the possibility of a veto.
The bill cleared its third reading in the House with 31 votes in favor and 25 against. SB1373 received even stronger backing, passing with 37 approvals and 19 rejections. These bills represent the most significant state-level progress toward a strategic Bitcoin reserve in the U.S. Moreover, they set a precedent for other states weighing similar options.
According to Representative Jeff Weninger, the legislation enables future flexibility. He emphasized that while the move starts as an option, it positions Arizona ahead of major shifts in digital finance. Besides Bitcoin, the bills allow for other virtual assets, indicating a broader approach to digital diversification.
National Momentum Fuels State-Level Action
The push in Arizona aligns with federal efforts led by former President Donald Trump and Republican lawmakers. In March, Trump signed an executive order proposing a federal Strategic Bitcoin Reserve. The order also called for a Digital Asset Stockpile to secure national crypto holdings.
Additionally, Senator Cynthia Lummis introduced a bill supporting the government’s accumulation of over one million BTC. She proposed that this reserve be funded partly through crypto seized from criminal or civil cases. Some lawmakers view her move as an attempt to formalize Trump’s executive proposal through congressional law.
Governor’s Stance Remains Uncertain
Despite legislative momentum, Governor Hobbs remains cautious. On April 17, she pledged to veto any bills until lawmakers address bipartisan healthcare funding. However, a recent funding breakthrough may influence her stance on SB1025 and SB1373.
Arizona’s proactive stance could inspire other states. New Hampshire has already passed a similar measure in its House, with a Senate vote pending. Consequently, Arizona’s success could mark a new era in state-level crypto finance.
