The Arizona state legislature approved a pair of bills on Monday that could pave the way for the creation of the country’s first-ever state Bitcoin reserve.
The fate of the bills, which mimic President Donald Trump’s moves on the national level, is now in the hands of Democratic Gov. Katie Hobbs.
The pair of bills, both spearheaded by Republicans and passed largely along partisan lines through the state House and Senate, would allow the state to invest up to 10% of its public funds in digital assets like bitcoin. According to a 2023 audit, Arizona holds more than $30 billion in state-managed assets.
If Hobbs signs them into law, Arizona becomes the first state in the nation to have its own cryptocurrency reserve. If Hobbs uses her veto power on the bills, they’re dead.
NBC News reached out to Hobbs’ office for comment on how she plans to proceed with the bills. A spokesperson declined to comment.
Republican state Sen. Wendy Rogers, who sponsored one of the pieces of legislation, said it’s in the governor’s best interest to sign the legislation into law. “Crypto and bitcoin have a huge following nationwide and in Arizona. They are wildly popular with the youth and independents,” said Rogers, adding: “I certainly hope she signs it because she can take credit and it will make her look good.”
The passage of these bills in the Arizona state legislature follows President Donald Trump’s announcement of a “strategic crypto reserve” in March. But Trump’s announcement bothered some cryptocurrency supporters after the president posted on his social media platform that the reserve will include lesser-known cryptocurrencies besides bitcoin that are more prone to volatility.
Barrett Marson, a Republican political consultant based in Phoenix, said GOP members of the Arizona state legislature are taking their cues from the President. “Arizona Republicans are nothing if not attuned to what Trump is doing and always finding a way to replicate that here in the state,” said Marson.
Marson isn’t sure if Hobbs will sign the bills into law or veto them, but he believes crypto’s mercurial nature is likely a consideration. “Gov. Hobbs will undoubtedly consider how volatile bitcoin can be when she decides whether to sign or veto this effort,” said Marson.
But Rogers isn’t concerned. “I do not have any concerns about the volatility of bitcoin simply because if you zoom out on all of the charts, it always increases in value,” Rogers said, before arguing that bitcoin is a “hedge against inflation.”
“I can’t speak for the other cryptocurrencies as those need to be analyzed on an individual basis,” she said.
