Arizona Legislature Passes Bitcoin Reserve Bill, Awaits Governor’s Approval

Highlights:

• Arizona passes two bills to allow cryptocurrency reserves, including Bitcoin, in state assets.
• Governor Hobbs’ veto stance puts Arizona’s cryptocurrency reserve plans at risk.
• Growing support for state-level Bitcoin reserves reflects a national trend in U.S. states.

Arizona lawmakers moved closer to creating a crypto reserve after passing two key bills in the House of Representatives. Senate Bill 1025 (SB1025) passed on April 28 with 31 votes supporting and 25 opposing. The bill permits investing up to 10% of treasury and pension assets in digital assets, including Bitcoin. Meanwhile, Senate Bill 1373 (SB1373), designed to establish a Digital Assets Strategic Reserve at the state level, secured approval with 37 supporting votes and 19 opposed. 

The approvals move these bills closer than any other state-level initiative in the United States to establishing a cryptocurrency or Bitcoin strategic reserve. A similar proposal in New Hampshire passed the state’s House in April and is now set to go to the Senate for a full vote soon.

The bill reads:

“This bill represents an emerging approach by a state government to integrate cryptocurrency into public financial management, reflecting the growing mainstream acceptance of digital assets.”

The bill has two Republican co-sponsors: Senator Wendy Rogers and Representative Jeff Weninger. Weninger said many other states are looking at similar plans, with about 15 considering the idea. He explained that the bill would let the treasurer invest up to 10% of funds, mostly in Bitcoin but also in other digital assets. Weninger added that while the state might move slowly at first, it would be ready as Bitcoin becomes more important in the future.

Governor Hobbs’ Veto Stance Raises Uncertainty

The bills are now awaiting review by Governor Katie Hobbs, who has not yet revealed whether she will approve or reject them. On April 17, Hobbs announced her plan to veto any bills until lawmakers reached a bipartisan agreement on funding to protect healthcare for Arizonans with disabilities. While she has not directly addressed SB1025, her general veto position raises questions about the bill’s future.

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.

— Governor Katie Hobbs (@GovernorHobbs) April 17, 2025

Supporters of the proposal believe a Bitcoin reserve would help Arizona diversify its assets and protect against inflation. They see Bitcoin’s limited supply and decentralization as advantages over traditional reserves. This is especially true given concerns about national debt and currency value decline.

However, critics argue that Bitcoin’s price volatility could put state funds at high financial risk. Some also worry about the lack of federal regulation for cryptocurrencies and whether public funds should be invested in such speculative assets.

Growing Support for Bitcoin Reserves Across U.S. States

State-level initiatives to create Bitcoin reserves are part of a larger push by former President Donald Trump and Republican lawmakers for similar actions at the federal level. In March, he signed an executive order proposing the creation of a “Digital Asset Stockpile” and “Strategic Bitcoin Reserve.”

At present, 19 U.S. states have crypto reserve bills awaiting Senate approval, with Arizona and Utah close to passing theirs. Meanwhile, bills supporting crypto investments have been rejected in South Dakota, Montana, Wyoming, North Dakota, and Pennsylvania. Despite these setbacks, the broader trend indicates increasing support for crypto investments nationwide.