Arizona Inches Closer to Bitcoin Reserve Bill as Veto Threat Emerges

Arizona is close to approving a Bitcoin reserve bill, becoming the first US state to accumulate Bitcoin in state funds. However, Governor Katie Hobbs has threatened to veto the bill unless bipartisan funding for disabled Arizonans is addressed first. Similar legislative efforts have failed in other states, including Oklahoma, Montana, North Dakota, and Wyoming, raising concerns about the stability and viability of crypto investments.

Arizona stands on the verge of passing its first Bitcoin reserve bill, pending a single legislative vote. This legislation includes establishing a Bitcoin reserve through seized assets and allowing a state investment of up to 10% in cryptocurrencies. If passed, Arizona would become the first state in the US to accumulate Bitcoin in its treasury, yet opposition from Governor Katie Hobbs may hinder progress.

Governor Hobbs has indicated a veto threat, insisting that legislators must first achieve bipartisan consensus on funding for Arizona’s disabled community. She stated, “Business as usual cannot continue,” asserting that any bills not on her desk could be rejected. The Digital Assets Strategic Reserve bill has successfully passed a committee, while a companion bill concerning public investment in digital assets awaits a final decision.

Although Utah initially looked set to create a formal Bitcoin reserve, its bill excluded provisions for direct Bitcoin state treasurer holdings, instead focusing on custody protections. New Hampshire and Texas are still pursuing similar legislation that permits limited investments into large-cap cryptocurrencies. Currently, 39 strategic Bitcoin reserve bills are under consideration in 20 states across the US.

Efforts in other states to create Bitcoin reserve bills have often met resistance. For instance, Oklahoma’s Strategic Bitcoin Reserve Act faltered after a narrow defeat in the Senate, despite clearing previous hurdles. This legislative failure adds to a series of unsuccessful attempts in states like Montana and North Dakota, where proposals have not progressed amid concerns regarding speculation and taxpayer funding risks.

The cryptocurrency market remains dynamic, with Bitcoin recently trading at $84,550—up by 0.3% in the past 24 hours. In contrast, Ethereum has declined by 0.5%, now priced at $1,585, raising questions about investor sentiment amidst market volatility. Key reporting from DL News highlights ongoing developments in the crypto landscape and regulatory response.