Arizona – known as the “Grand Canyon State” – stands on the brink of a historic opportunity to become the first U.S. state to store Bitcoin in its public asset reserves. However, this hope is threatened by a tough statement from Governor Katie Hobbs, who declared she would veto any bills not presented for her signature.
Two groundbreaking bills: Bitcoin reserve and public investment in digital assets
Lawmakers at #Arizona just made significant strides in efforts to integrate digital assets into public finance. Two prominent bills have passed at the committee level:
The “Digital Assets Strategic Reserve” bill: Allows the state to use seized funds to create a Bitcoin reserve.
Public asset investment bill: Paves the way for the state to invest up to 10% of public funds into Bitcoin and other major cryptocurrencies.
If signed into law, this would mark the first time in history that a U.S. state officially reserves and invests Bitcoin using state funds.
Veto threat from the Governor
However, Governor Katie Hobbs (Democrat) issued an ultimatum on Thursday, demanding the legislature reach a bipartisan agreement on the budget for the disabled before considering any other legislation.
“The work of lawmaking cannot continue as usual,” Hobbs posted on X. “Any bill that has not been brought to my desk will be vetoed.”
This warning makes the future of two Bitcoin-related bills uncertain, even though both have advanced significantly in the legislative process.
Where are other states in the race?
Arizona is not the only state looking to approach Bitcoin through state assets, but it is leading the way in actualizing this. Previously:
Utah had the chance to take the lead but removed the provision allowing direct holding of Bitcoin from the final bill, shifting focus to regulations on custodianship and mining/unlocking rights.
New Hampshire and Texas are also considering bills to allow investment in major market cap digital assets like Bitcoin, but have not progressed as far as Arizona.
Oklahoma failed in its attempt to pass the “Strategic Bitcoin Reserve Act” – a proposal that had passed three House committees and a full vote, but was ultimately rejected in the Senate committee.
In Q1/2025, similar efforts in Montana, North Dakota, and Wyoming also “failed to thrive”, despite a growing wave of crypto support within the Republican Party since Donald Trump returned to the White House.
Why is it controversial?
Supporters argue that incorporating Bitcoin into public reserves or public investments would help states leverage the potential price appreciation of digital assets, diversify portfolios, and access a new decentralized financial system.
However, the opposition – typically in Montana – warns that this is “speculative” and could harm taxpayers if the market is highly volatile.
Will Arizona succeed?
Currently, both bills in Arizona have passed committee review and are only waiting for one final step – but this step is being blocked by the political decision of the Governor. If not signed in time, both could “die prematurely” like a series of efforts in other states.
Engage with crypto users
If you are an investor using Binance, this indicates that the acceptance of digital assets is gradually increasing, not just at the individual level but also at the state and governmental level. In the future, if states like Arizona succeed, it could create a domino effect that promotes the development of crypto products nationwide – and crypto users could be the first beneficiaries of that change.
Risk warning
The cryptocurrency market is highly volatile and poses significant risks. This article is not investment advice. Please consider carefully and do your own research before making any financial decisions.