#ArizonaBTCReverse Arizona is close to adopting Bitcoin: What if the government halts it?
The State of the Grand Canyon approved projects SB 1025 and SB 1373 to invest up to 10% of public funds in bitcoin.
One signature can change everything: Arizona, about to legalize strategic reserves in bitcoin.
The SB 1025 proposal is exclusive to bitcoin, while SB 1373 includes other cryptocurrencies.
Bitcoiners are calling to contact the governor's office, which has a large number of vetoes.
Yesterday was a historic day for bitcoiners: Arizona approved two bills closely linked to the creation of a state reserve of bitcoin and cryptocurrencies. The initiatives SB 1025 and SB 1373 began their legislative course in January and February, respectively, and gradually progressed until they were close to Governor Katie Hobbs' desk, who must decide whether these regulations will come into effect quickly.
The SB 1025 proposal allows Arizona to invest up to 10% of its public funds in bitcoin. According to official data, the Arizona Treasury manages USD 32 billion in assets since January 2019, and also handles the cash flow of the state budget, which is USD 65 billion. This means that the jurisdiction could invest around USD 3 billion in BTC.
For its part, the SB 1373 project proposes the creation of a strategic reserve composed of multiple cryptocurrencies, which will initially be formed by money seized in criminal proceedings. Just a few days ago, the initiative received the green light in the Full Committee of the House of Representatives, a step prior to the final reading and definitive voting. It is known that the state treasurer will be able to invest up to 10% of the confiscated funds in cryptocurrencies during each fiscal year.
Although both proposals have reached the end of their legislative journey, there is still one key step left: the signature of Governor Katie Hobbs, who has accumulated more than 200 vetoes in the last two years. A few weeks ago, the official warned that she would block any initiative that reached her desk if a bipartisan measure to fund a program for assisting people with disabilities was not approved. Finally, there was an agreement to allocate USD 122 million to this section, which was on the verge of running out of funds.
However, bitcoiners do not overlook Hobbs' extensive history of vetoes nor her recent rejection of the HB2906 project, which sought to expand the scope of a regulatory program to include cryptocurrency companies. This is a proposal that has been in Arizona since 2018, allowing innovative companies to operate under a more flexible legal framework while testing new products or services.
In this scenario, the Bitcoin Laws team—specialized in informing about laws related to cryptocurrencies—made a call to the public to contact Governor Hobbs' office, with the aim of preventing possible vetoes.
The truth is that if the governor decides to halt these efforts, both laws would be blocked and the state would not be able to invest in bitcoin or establish a strategic reserve of cryptocurrencies. The initiatives would return to the legislature, where lawmakers could attempt to override the veto, but this requires a qualified majority of two-thirds in both chambers: at least 40 votes in the House of Representatives (of 60 members) and 20 in the Senate (of 30). Since SB 1025 was approved with 31-25 in the House and 17-11 in the Senate, and SB 1373 with 37-19 in the House, at the moment, none would reach the necessary votes to overturn the decision. If that majority is not achieved, the projects would be discarded and could not be implemented.
In case Hobbs decides to sign both initiatives, they would come into effect immediately, which would open the door to the development of an operational framework that ensures transparency and security in investments. For this, it would be necessary to establish internal regulations, with the Treasury working hand in hand with cryptocurrency experts to implement the measures contemplated in the laws. With these steps, Arizona would begin to promote the arrival of companies in the sector, fostering technological innovation and setting a precedent for other states.
According to Bitcoin Laws, 46 bills related to the creation of strategic bitcoin reserves have been presented in the United States so far. Of that total, 39 are still active in 20 states. Texas, Alabama, Florida, Georgia, Ohio, and New Hampshire are among those still waiting to approve some of their proposals.
