Arizona legislature pushes for a state bitcoin reserve

The Arizona Legislature has passed two bills on Monday that may lead to the establishment of the United States’ first state Bitcoin reserve. The future of these bills, which mirror actions taken by President Donald Trump at the national level, now rests with Democratic Governor Katie Hobbs. These bills, sponsored by Republicans and approved mostly along party lines in the House and Senate, would enable the state to invest up to 10% of its public funds in digital assets such as bitcoin. An audit conducted in 2023 revealed that Arizona holds over $30 billion in state-managed assets.

If Governor Hobbs signs the bills into law, Arizona will make history by having its own cryptocurrency reserve. However, should she choose to veto them, the bills will not proceed. A spokesperson declined to comment on the governor’s intentions.

State Senator Wendy Rogers, a Republican who introduced one of the bills, believes it is in Hobbs’ best interest to approve the legislation. She emphasized the popularity of crypto and bitcoin, especially among the youth and independents, and expressed hope that Hobbs signs the bills to enhance her image.

While Trump had announced a “strategic crypto reserve” in March, some cryptocurrency supporters were concerned when he mentioned including lesser-known cryptocurrencies alongside bitcoin in the reserve, which are more volatile.

Republican political consultant Barrett Marson from Phoenix noted that Arizona Republicans are closely following Trump’s lead. He acknowledged uncertainty about Hobbs’ decision but suggested that the unpredictable nature of cryptocurrencies might influence her choice. Rogers, however, remains unfazed, citing bitcoin’s historical value increase and viewing it as a safeguard against inflation.

She also highlighted the need for individual analysis of other cryptocurrencies, emphasizing bitcoin’s stability compared to the rest.