Arizona is poised to approve first Bitcoin reserve bill as veto threat looms

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Arizona is ready to stack Sats, but the governor is threatening to nuke a pair of bills that would make it possible.

This month, legislators in the Grand Canyon State have moved closer to approving two digital asset proposals: one establishing a Bitcoin reserve using seized funds, and another allowing state investment of up to 10% in Bitcoin and other cryptocurrencies.

This puts Arizona on the brink of becoming the first US state to allow the accumulation of Bitcoin in state coffers.

But Governor Katie Hobbs, a Democrat, isn’t playing ball.

Veto threat

On Thursday, she insisted that the state’s legislators reach a bipartisan agreement on funding for Arizonans with disabilities before other legislation is considered.

“Business as usual cannot continue,” Hobbs posted on X. “Any bill not already on my desk will be vetoed.”

On April 17, lawmakers approved passage of the Digital Assets Strategic Reserve bill from a committee.

A companion bill, which outlines how public funds could invest directly in digital assets like Bitcoin, also cleared a committee on April 1 and awaits a final vote.

Utah was initially positioned to be the first to create a formal Bitcoin reserve system, but legislators dropped language allowing direct Bitcoin holdings by the state treasurer from the final version of the bill.

Instead, the Utah measure focused on custody protections and rights for mining and staking.

The two next closest contenders are New Hampshire and Texas, where bills allowing limited digital asset investments tied to large-cap cryptocurrencies like Bitcoin are still in play.

According to Bitcoin Laws, 39 strategic Bitcoin reserve bills are currently fighting for passage across 20 states.

Foundering efforts

Similar bills in other states are already dead in the water.

Earlier this week, Oklahoma’s Strategic Bitcoin Reserve Act failed in a narrow Senate vote. The bill had cleared three House committees and a floor vote before dying in its final committee review.

It would have authorised the state treasurer to invest funds from major state accounts in Bitcoin and large-cap digital assets.

Oklahoma joins a growing list of states where similar efforts have fizzled.

In the first quarter, proposals in Montana, North Dakota, and Wyoming all failed, despite growing Republican support for digital assets following Donald Trump’s return to office.

Critics in Montana warned that creating a crypto reserve “smacked of speculation” and could jeopardise taxpayer funds.