Arizona Pushes Crypto Reserve Bill Toward Final Vote—But Will Governor Hobbs Veto It?

Arizona has taken a significant step closer to making crypto history. The state’s Strategic Digital Assets Reserve Bill (SB 1373) passed another major hurdle on April 17, clearing the House Committee made up of all 60 state representatives. The bill now heads to its final reading, where a full House vote could send it directly to Governor Katie Hobbs for approval.

If enacted, SB 1373 would enable Arizona to establish a Digital Assets Strategic Reserve Fund, comprising cryptocurrencies seized during criminal investigations. The bill empowers the state treasurer to manage this reserve and invest up to 10% annually in digital assets, including cryptocurrencies.

However, despite bipartisan momentum, the bill could still face a major obstacle at the governor’s desk.

Bill Would Create a Crypto Reserve Backed by Seized Digital Assets

The proposed legislation seeks to build a forward-thinking reserve for Arizona by utilising digital currencies obtained through state-led criminal cases. According to the bill:

The State Treasurer would oversee the fund
Up to 10% of the reserve could be invested annually in digital assets
The fund could generate additional revenue by loaning out assets, provided it doesn’t introduce financial risk to the state

This approach would make Arizona one of the first states to create an official crypto reserve fund, offering both financial innovation and a potential revenue stream for public spending.

Governor Hobbs Could Derail the Bill With a Veto

Even if the House passes SB 1373 in its final vote, Governor Katie Hobbs could prevent it from becoming law. Hobbs has recently taken a firm stance against legislative action that doesn’t prioritise funding for disability services.

Governor Hobbs vetoed 15 bills in just one week, pledging to continue rejecting legislation until lawmakers pass a budget that addresses essential social programs.

Her history of vetoing both Republican and bipartisan bills raises doubts about the future of Arizona’s crypto initiative. Political analysts believe that even widely supported measures, such as SB 1373, are at risk of being blocked under her current strategy.

Arizona Considers a Bitcoin-Only Bill Alongside SB 1373

Arizona is also advancing SB 1025, a second crypto-focused bill that deals exclusively with Bitcoin. If signed into law, this bill would allow the state treasurer and retirement systems to invest up to 10% of available funds in Bitcoin alone.

The House Committee approved SB 1025 on April 1, and the bill now awaits a full vote in the House. If passed, Arizona would not only hold a general crypto reserve but also become a government investor in Bitcoin, further solidifying its position as a crypto-friendly state.

Other U.S. States Race Toward Crypto Reserves

Arizona isn’t the only state exploring digital asset reserves. Several others are moving in a similar direction:

Texas passed a Bitcoin reserve bill on March 6, which faces fewer political hurdles than Arizona’s legislation
Utah approved a crypto bill on March 7, but ultimately removed language related to a Bitcoin reserve
New Hampshire’s House has passed a draft resembling Arizona’s proposals
Wyoming continues to lead in blockchain innovation, but hasn’t proposed a crypto reserve yet

While Arizona has made the most legislative progress, political observers believe Texas has the best chance of implementing its crypto law, given the smoother political landscape there.

What Comes Next for Arizona’s Crypto Future?

With both SB 1373 and SB 1025 nearing final votes, Arizona stands at a crucial turning point in crypto policy. If either bill becomes law, the state would be among the first in the U.S. to officially adopt and invest in digital assets.

That move could spark a wave of similar legislation nationwide, particularly among states seeking innovative revenue strategies and greater financial independence.

Still, everything hinges on Governor Hobbs. If she follows through on her veto threats, Arizona’s bold step into digital finance could stall, at least for now.

Final Thoughts

Arizona is at a pivotal moment in U.S. crypto legislation. The state has built strong momentum behind two innovative crypto bills, signalling a desire to embrace blockchain-based reserves as part of its economic future.

However, political realities could derail that progress. If Governor Hobbs vetoes the bills, Arizona might miss a historic opportunity to become a national leader in public-sector crypto investment.

Until then, all eyes remain on the state capitol as Arizona prepares to make—or miss—digital asset history.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.