Arizona Legislature Approves Historic Bitcoin Investment Legislation

Two proposed laws allowing the state of Arizona to invest in digital currencies have successfully passed through both legislative chambers and are now awaiting the decision of Governor Katie Hobbs.

Senate Bill 1025, known as the Arizona Strategic Bitcoin Reserve Act, alongside Senate Bill 1373, which establishes a Digital Assets Strategic Reserve Fund, would enable the state treasurer and retirement system to allocate up to 10% of available funds into Bitcoin and various cryptocurrencies.

This development positions Arizona as the pioneering state to enact such legislation. The votes were recorded on April 28, passing with counts of 31-25 and 37-19, respectively. Both bills had previously cleared the state’s House Rules Committee on March 24.

Pending Governor’s Approval

Supporters, including co-sponsor Representative Jeff Weninger, contend that the new laws would help diversify Arizona’s reserves, provide a hedge against inflation, and place the state at the forefront of financial advancement.

Nonetheless, Governor Hobbs has not revealed her stance on the bills and has recently committed to vetoing all legislation until a budget impasse is resolved, as reported.

If Governor Hobbs vetoes the Bitcoin reserve legislation, the issue would be settled for the year, indicating no chances for an override or reconsideration until the next legislative session in 2026.

“Any bill not already on my desk will be vetoed until we have a serious, bipartisan funding solution that protects health care for Arizonans with disabilities,” she stated on social media on April 17.

SB 1025 specifically targets investments in Bitcoin and includes provisions to safeguard any Bitcoin amassed in a segregated account linked to a potential federal Bitcoin reserve.

SB 1373 aims to establish a reserve fund managed by the Treasury, composed of cryptocurrency assets obtained during criminal investigations. This fund would also be limited to a 10% cap, with the additional capability of loaning assets for enhanced returns.

Recent Developments in Crypto Legislation

According to the Bitcoin Law’s State Reserve Race tracker, Arizona is currently at the forefront with these two cryptocurrency investment bills in the final voting stages.

Reports indicate that two crypto-related bills reached Governor Hobbs’ desk on April 18.

HB 2906 sought to broaden a regulatory sandbox to encompass crypto companies, but this was vetoed. Conversely, HB 2342, which protects Bitcoin mining from regulatory bias, was approved.

Meanwhile, the Bitcoin Reserve Bill HB 92 successfully passed the North Carolina Committee on Rules, Calendar, and Operations of the House this week, clearing all assigned committees.

On April 21, California Assembly Bill 1052, also known as the “Digital Assets Bill” (originally the Money Transmission Act), passed a committee vote with bipartisan support.