Arizona may soon become the first state in the U.S. to include cryptocurrencies in its investing strategy. Two pieces of legislation have been passed by lawmakers recently. If Governor Katie Hobbs signs the bill into law, the state will be a national pioneer in the adoption of cryptocurrency at the state level.
Senate Bill 1025, also known as the Arizona Strategic Bitcoin Reserve Act, was adopted by the Arizona House of Representatives on Monday, 31-25-4. This bill gives the state permission to invest up to 10% of public monies, including those from the state pension and treasury systems, directly in Bitcoin.
By a vote of 37-19-4, the House also approved SB1373, a companion bill. By establishing a Digital Asset Strategic Reserve Fund, which may contain multiple cryptocurrencies, stablecoins, and even NFTs, this law adopts a more comprehensive strategy. Notably, the state would also store digital assets seized from criminal cases in this fund.
Back on February 27, both bills had previously passed the state Senate. They are now going directly to Governor Hobbs’ desk for a final approval because no revisions were made.
However, Hobbs recently stated on X that she would veto all bills until the Republican-controlled legislature approved a serious bipartisan funding solution that protects healthcare for Arizonans with disabilities. She has already vetoed 15 bills last week.
SB1025 encourages possible involvement in a future federal Bitcoin reserve and permits Arizona to invest public monies, including retirement savings, in Bitcoin. SB1373 guarantees continuous funding beyond normal fiscal year boundaries and creates the framework for handling digital assets such as seized cryptocurrencies.
Now it is to see whether Governor Hobbs approves or rejects the bill, as this will decide whether Arizona sets a new standard for state-level investment in digital assets.
Also read: US Federal Reserve Removes Restrictions on Bank Crypto Use
