#ArizonaBTCReserve Arizona Legislature approves Bitcoin reserve bill, governor's approval pending
Arizona's decision to establish a Bitcoin reserve faces uncertainties as Governor Hobbs considers her veto amid a budget impasse.
Arizona has become the first state in the country to approve legislation creating a Strategic Bitcoin Reserve after both chambers of the legislature passed the measure in votes that diverged widely from party lines on April 28.
The legislation, sponsored by Republican Senator Wendy Rogers, authorizes the state treasury to invest a portion of public funds in Bitcoin (BTC).
According to information shared by Satoshi Action Fund CEO Dennis Porter, no member was excused or absent in any of the votes. The bill was approved in the House by 29 to 25 and in the Senate by 31 to 25, with four legislators not voting in the Senate.
The bill now goes to Governor Katie Hobbs for review. Hobbs has not yet indicated whether she will sign or veto the measure.
However, she recently promised to veto all bills sent to her desk until the state legislature approves a new budget. Hobbs has not specifically commented on SB1025 but has remained firm in her broader veto position, creating uncertainty about the bill's prospects.
Supporters of the proposal argue that establishing a Bitcoin reserve could help Arizona diversify its assets, protect against inflation, and position the state at the forefront of digital financial innovation.
They point to Bitcoin's fixed supply and decentralized nature as advantages over traditional fiat reserves, especially amid concerns over national debt and currency devaluation.
Meanwhile, critics have warned that the extreme volatility of Bitcoin's price could expose state funds to significant financial risks.
