- Arizona is close to approving a bill that would let the state treasury invest in Bitcoin and other digital assets.
- Governor Hobbs has threatened to veto all new bills unless lawmakers fix a $122 million funding gap.
- Similar crypto reserve proposals have failed in other states, but Arizona’s could still pass—if politics don’t get in the way.
Arizona’s lawmakers are on the verge of pulling off something no other U.S. state has done yet: letting Bitcoin (and a few other digital assets) sit in the state treasury. But—there’s a catch. A political face-off with Governor Katie Hobbs might shut the whole thing down before it even gets going.
Here’s what’s up: Senate Bill 1373, dubbed the Digital Assets Strategic Reserve Fund, cleared a key hurdle on April 17 when it passed through the House Committee of the Whole. All that’s left is a final floor vote. If passed, it would set up a fund, managed by the state treasurer, made up of crypto seized by the state or added via state budget. The treasurer would be allowed to invest up to 10% of that fund in assets like Bitcoin, and even lend them out to earn more—as long as the risk doesn’t balloon.
And there’s more—Senate Bill 1025, known as the Arizona Strategic Bitcoin Reserve Act, would let the treasury and the state retirement system put up to 10% of their funds into Bitcoin specifically. That one passed through committee back on April 1, and it’s also waiting on a final vote.
But Governor Hobbs Isn’t Having It (Yet)
Despite the momentum, Governor Hobbs has pretty much slammed the brakes. She’s made it clear: until lawmakers deal with a $122 million budget shortfall for the Division of Developmental Disabilities, she’s not signing anything.
“Business as usual cannot continue,” she posted on social media. “Any bill not already on my desk will be vetoed.”
So yeah, even if the bills make it through the House, they’re likely heading straight for the veto pile—at least for now.
A GOP-Driven Push
Both crypto bills have been championed mostly by Republicans and would fall under the management of the state treasurer. One is funded by seized or allocated money, and the other allows actual state capital to go into Bitcoin. All of this fits in with the growing GOP support for crypto—especially since Trump got back in office. That said, Hobbs’ resistance isn’t unique. Other Democrat-led states have pushed back on similar ideas, citing concerns over market risk and crypto’s volatility.
Other States? Not So Lucky
Arizona’s crypto push stands out because—well—other states haven’t fared so well. Just this week, Oklahoma’s own Bitcoin reserve proposal fell apart during its Senate review, even though it had cleared multiple committees in the House.
Earlier attempts in places like Montana, North Dakota, and Wyoming also fizzled. Utah, once seen as a leader on the issue, ended up scrubbing language that would’ve allowed the state to directly hold Bitcoin. Instead, they pivoted to a more conservative route—just protecting crypto custody and mining legally.
Still, other states are hanging in. Texas and New Hampshire have bills in the works for limited crypto investments. According to Bitcoin Laws, there are now more than 30 active Bitcoin reserve proposals floating around in 20+ states.
So, What’s Next?
Supporters argue Bitcoin could help hedge against inflation and serve as a modern alternative to traditional cash reserves. But critics are still waving red flags, saying volatile assets like crypto just aren’t stable enough to play with taxpayer money.
The final vote on Arizona’s SB1373 could happen any day now—but it’s Governor Hobbs’ decision that’ll make or break it. Will Arizona lead the way or end up just another state that almost made it?
