Arizona is poised to be the first U.S. state to invest in cryptocurrencies, pending Governor Hobbs’ approval of two bills. One allows up to 10% public investment in Bitcoin; the other establishes a comprehensive Digital Asset Strategic Reserve Fund. However, Hobbs may veto pending legislation due to funding concerns related to healthcare.
Arizona is on the verge of becoming the first state in the U.S. to officially incorporate cryptocurrencies into its investment strategies. Recently, two key pieces of legislation, notably Senate Bill 1025 and SB1373, have cleared the legislative hurdle, awaiting the crucial signature from Governor Katie Hobbs.
Specifically, Senate Bill 1025, known as the Arizona Strategic Bitcoin Reserve Act, was passed by the Arizona House of Representatives with a vote of 31-25-4. If enacted, this bill would allow the state to invest as much as 10% of public funds—including those allocated for state pensions—directly into Bitcoin.
In tandem, SB1373 also gained approval from the House, passing with a count of 37-19-4. This bill aims to create a Digital Asset Strategic Reserve Fund, which would include various cryptocurrencies, stablecoins, and even non-fungible tokens (NFTs). Interestingly, it also mandates the storage of digital assets acquired through criminal proceedings within this fund, making it a multifaceted initiative.
Interestingly, both bills received prior approval from the state Senate on February 27. They now land squarely on Governor Hobbs’ desk, as no changes were made that would require further revision.
However, there’s a twist: Governor Hobbs has expressed her intent to veto all bills until a bipartisan funding solution to safeguard healthcare for Arizonans with disabilities is agreed upon. Notably, she vetoed 15 bills last week alone.
The implications of SB1025 are significant, as it not only allows Arizona to potentially engage with a federal Bitcoin reserve in the future but also opens the door for investing public treasury funds and retirement savings into this cryptocurrency.
Meanwhile, SB1373 offers a mechanism for ongoing funding that extends beyond typical fiscal guidelines, outlining a structure for managing digital assets, including those seized in legal situations. Now, the moment of truth approaches as the fate of these bills rests in Governor Hobbs’ hands, determining whether Arizona becomes a leader in state-level digital asset investment.
