- Arizona House approves Senate Bills 1025 and 1373 to establish a Bitcoin reserve and digital asset fund.
- Governor Katie Hobbs’ ongoing veto campaign threatens the future of Arizona’s Bitcoin reserve proposals.
- Bitcoin reserve supporters argue the move could help diversify state assets and hedge against inflation.
Arizona’s push to integrate Bitcoin into its treasury advanced on Monday, as the state’s House of Representatives passed two major pieces of legislation to establish a digital asset reserve. Both measures have been moved to Governor Katie Hobbs for consideration, but their future remains uncertain due to an ongoing budget standoff.
Arizona House Passes Bitcoin Reserve Bill and Seizure Fund Proposal
On April 28, in a third House reading, lawmakers passed Senate Bill 1025 — known as Arizona’s Bitcoin reserve bill — by a tight 31-25 margin. The legislation would authorize the state treasurer to invest up to 10% of Arizona’s funds into Bitcoin and potentially other digital assets.
Republican Representative Jeff Weninger described the measure aligning with initiatives under consideration in approximately 15 other states. He noted the bill would likely act as an option for the state until demand for digital asset holdings increases.
Related: New Hampshire Eyes Bitcoin Investment for State Funds; Bill Advances, Market Watchers React
A second measure, Senate Bill 1373, passed more comfortably with a 37-19 vote. This bill proposes creating a reserve fund managed by the state treasurer, specifically funded by digital assets seized during criminal investigations.
Both bills position Arizona ahead of states like Texas and New Hampshire in efforts to formalize cryptocurrency holdings at the state level.
Governor Hobbs’ Veto Threat Hangs Over Bitcoin Bills
Despite the legislative victories, the fate of SB1025 and SB1373 remains unclear. Governor Katie Hobbs has pledged to veto every bill reaching her desk until a bipartisan budget deal is finalized. On April 17, she reaffirmed her position, citing a $122 million budget shortfall tied to the Division of Developmental Disabilities.
Although Hobbs has not directly commented on the Bitcoin bills, her broader veto campaign has already blocked 15 bills in recent weeks, giving her the highest veto rate among U.S. governors in 2024.
Related: Arizona House Committee Greenlights Bitcoin Reserve Bill
According to Dennis Porter, CEO of the Satoshi Action Fund, no members were excused or absent during Monday’s votes. Final tallies recorded 29-25 for SB1025 in the House and 31-25 in the Senate, with four lawmakers abstaining.
Backers of Arizona’s digital asset proposals argue that a Bitcoin reserve could provide the state a hedge against inflation and a new avenue for asset diversification. Opponents caution that Bitcoin’s price swings and ongoing regulatory uncertainty could expose public funds to greater risk.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
