Will Arizona Be the First State to Join the Federal Reserve in Planning to Create a Bitcoin (BTC) Reserve?
Will Arizona Be the First State to Join the Federal Reserve in Creating a Bitcoin Reserve?
Arizona lawmakers' new approval to establish a digital asset reserve still must overcome a possible veto from the Democratic governor.
Jesse Hamilton | Edited by Nikhilesh De on April 29, 2025, 4:11 PM
What you need to know:
- The Arizona Legislature has moved, largely with party support, to advance a bill to create a virtual asset reserve through both chambers.
- Similar initiatives have been proposed by several states this year, but none have yet reached the final stages.
- The bill's fate now rests with Arizona Gov. Katie Hobbs, who recently took a stance against signing any bill into law until the funding issue for disabled voters was addressed, but signed a bill on the issue last week.
Arizona has added new dimensions to the competition among U.S. states to be the first to create a cryptocurrency reserve as an official part of their financial strategy, winning approval of legislation largely backed by Republican lawmakers.
It is unclear whether Gov. Katie Hobbs, a Democrat, will look favorably on the bill, which was rejected by most Democratic lawmakers. She has vetoed numerous bills this session, and if she vetoes this one, the matter will be closed for the year.
If approved, Arizona's inclusion of digital assets in its public investments could even outpace efforts by the U.S. Treasury Department, which has yet to fully report on U.S. assets before federal officials can begin building the reserve President Donald Trump has called for.
After the Arizona House of Representatives passed a bill to create a cryptocurrency reserve by a 31-25 vote on Monday (with three Democrats voting yes), the state leapfrogged other regions considering similar measures, including New Hampshire, where the bill passed the House.
Hobbs, however, has clashed with Republican lawmakers over the budget.
“Any bill that has not yet reached me will be vetoed until we have a robust, bipartisan funding solution that will protect health care for Arizonans with disabilities,” the governor said in an April 17 post on the social media site X. That issue may have been resolved with her signature on a disability funding bill last week.
