The Arizona Legislature approved a pair of bills Monday that could pave the way to create the country’s first state Bitcoin reserve.
The fate of the bills, which mimic President Donald Trump’s moves on the national level, is now in the hands of Democratic Gov. Katie Hobbs.
The pair of bills, both led by Republicans and passed largely along partisan lines through the House and the Senate, would allow the state to invest up to 10% of its public funds in digital assets like bitcoin. According to a 2023 audit, Arizona holds more than $30 billion in state-managed assets.
If Hobbs signs them into law, Arizona will become the first state to have its own cryptocurrency reserve. If Hobbs uses her veto power, the bills are dead.
A spokesperson declined to comment on how she plans to proceed.
Republican state Sen. Wendy Rogers, who sponsored one of the pieces of legislation, said it’s in Hobbs’ best interest to sign the legislation. “Crypto and bitcoin have a huge following nationwide and in Arizona. They are wildly popular with the youth and independents,” Rogers said, adding: “I certainly hope she signs it, because she can take credit and it will make her look good.”
Trump announced a “strategic crypto reserve” in March, but the announcement bothered some cryptocurrency supporters after he posted on his social media platform that the reserve will include lesser-known cryptocurrencies besides bitcoin, which are more prone to volatility.
Barrett Marson, a Republican political consultant based in Phoenix, said GOP members of the Arizona Legislature are taking their cues from Trump. “Arizona Republicans are nothing if not attuned to what Trump is doing and always finding a way to replicate that here in the state,” Marson said.
Marson, who said he isn’t sure whether Hobbs will sign the bills or veto them, said he believes crypto’s mercurial nature is likely to be a consideration. “Gov. Hobbs will undoubtedly consider how volatile bitcoin can be when she decides whether to sign or veto this effort,” he said.
But Rogers isn’t concerned. “I do not have any concerns about the volatility of bitcoin simply because if you zoom out on all of the charts, it always increases in value,” she said, before she argued that bitcoin is a “hedge against inflation.”
“I can’t speak for the other cryptocurrencies, as those need to be analyzed on an individual basis,” she said.
