Arizona is a step away from the first US state that Bitcoin and other digital assets have in his treasury, but a political impasse with Governor Katie Hobbs threatens to derail the effort before it reaches her desk.
Senate bill 1373The Digital Assets Strategic Reserve Fund, was approved by the house committee of the whole on April 17 and is now waiting for a vote on the last floor. The bill proposes to create a state by the treasurer of the State, consisting of digital assets confiscated by the state and funds assigned by the legislative power.
The treasurer of the State would be powerful to invest up to 10% of the fund annually in digital assets, including Bitcoin, and to borrow these assets to generate extra returns, provided that such actions do not increase the financial risk.
A corresponding measure, Senate Bill 1025, the Arizona Strategic Bitcoin Reserve Act, also approved the house committee of the whole on 1 April and waits for a final vote. This bill would allow the state and pension system of the State to invest up to 10% of the available funds, specifically in Bitcoin
Hobbs promises veto over budget priorities
If established, these accounts would place Arizona in the foreground in the integration of digital assets in financial strategies of the state.
However, Governor Hobbs has promised to perform a veto on all legislation that is not yet on its office until the legislators tackle a financing deficit of $ 122 million for the Division of Development Disorders Division.
Said Hobbs on April 17 in a post on social media:
“Things like usual cannot continue. Every bill that is not yet on my desk is pronounced veto.”
Both accounts, largely supported by Republican legislators, would be managed through the treasurer’s office. Although the reserve fund would rely on forfeited assets or funds budgeted, the investment law opens the door for direct allocation of state capital to cryptocurrencies with large caps, mainly bitcoin.
The movements come to the midst of wider Gop support for crypto initiatives, especially since the return of President Donald Trump to position. Nevertheless, the resistance of Hobbs Pushback reflects in other states by the democratic guided states, where concerns about the tax risk and the volatility have stalled similar legislation.
Other states are faltering, but the momentum builds up
Arizona’s momentum contrasts with failed attempts elsewhere. The strategic Bitcoin Reserve Act of Oklahoma collapsed this week during a final senate review, despite passing several house committees. In the previous months, crypto -reserve accounts also failed in Montana, North Dakota and Wyoming.
Utah, once a leader, deleted language that allowed the treasurer of the state of Bitcoin to hold directly, instead for legal protection on crypto -keys and mining.
In the meantime, Texas and New Hampshire still have legislation with limited investments in digital assets. According to Bitcoin laws, more than three dozen strategic Bitcoin proposals are active in 20 states.
Despite setbacks in different legislators, proponents claim that Bitcoin states could offer a cover against inflation and a modern alternative to traditional cash reserves. Critics remain skeptical and warn that speculative assets such as crypto are unacceptable risks for taxpayers dollars.
Arizona’s final vote on SB1307 is expected within a few days. However, the next step of the governor can determine whether the State maps a new path or maps the growing list of stuck efforts.
