Will Arizona Become the First State to Build a Bitcoin Reserve with the Federal Government?
Arizona legislators have recently approved a plan to establish a digital asset reserve, still facing potential veto by the Democratic governor.
The state legislature voted largely along party lines to advance a bill establishing a virtual asset reserve through both chambers. Several other states have been pushing similar bills this year, but none have completed the legislative process.
The matter now depends on Arizona Governor Katie Hobbs' approval. She recently stated she would veto all legislation until resolving disability funding issues—but she has already signed the related bill. In the race among U.S. states to incorporate crypto reserves into fiscal strategies, Arizona has made a breakthrough with legislation primarily supported by Republican lawmakers.
It remains unclear whether Democratic Governor Hobbs will support the bill, which was opposed by most Democratic legislators. Having already vetoed numerous proposals this session, another veto would prevent the issue from advancing this year.
If approved, Arizona's move to include digital assets in public fund investments could even precede the U.S. Treasury's progress—federal officials still need to complete a comprehensive accounting of U.S. held assets before establishing a reserve as requested by former President Donald Trump.
With the state House passing the crypto reserve proposal on Monday with a 31-25 vote (including support from 3 Democratic members), Arizona has surpassed other competitors considering similar measures, including New Hampshire, whose related bill has already passed the state House.
However, ongoing budget disputes persist between Hobbs and Republican legislators.
"Any bill submitted to my desk will be vetoed until we reach a truly bipartisan budget plan and ensure healthcare for Arizona's disabled," the governor stated on social media platform X on April 17. With her signing of the disability funding bill last week, this precondition may have been satisfied.
