In a historic move for the state of Arizona, two groundbreaking bills that would enable the state to invest in digital assets have successfully passed both legislative chambers and now await the crucial decision from Governor Katie Hobbs. The bills in question, Senate Bill 1025—the Arizona Strategic Bitcoin Reserve Act—and Senate Bill 1373, which establishes a Digital Assets Strategic Reserve Fund, represent a significant milestone in state-level cryptocurrency legislation.
On April 28, the Arizona House and Senate cast their votes, culminating in a narrow approval of 31-25 for SB 1025 and a more decisive 37-19 for SB 1373. This makes Arizona the first state in the nation to enact such legislation that permits state treasurers and retirement systems to allocate up to 10% of available funds in Bitcoin and other cryptocurrencies. These developments align with a growing trend among states to explore alternative investment strategies in the rapidly evolving digital asset landscape.
ARIZONA JUST BECAME THE FIRST STATE IN THE NATION TO PASS STRATEGIC BITCOIN RESERVE LEGISLATION IN THE HOUSE AND SENATE.
ONTO THE GOVERNOR’S DESK! pic.twitter.com/GLTBdNTkpq
— Dennis Porter (@Dennis_Porter_) April 28, 2025
Decision Time for Governor Hobbs
Advocates of the legislation, including co-sponsor Representative Jeff Weninger, contend that these measures would not only diversify Arizona’s investment portfolio but also serve as a hedge against inflation and position the state as a leader in financial innovation. However, the path forward is uncertain, as Governor Hobbs has yet to disclose her stance on the bills. Compounding the situation, she has recently announced a commitment to veto all legislation until a bipartisan budget impasse is resolved, raising concerns among supporters regarding the bills’ future.
If Governor Hobbs chooses to veto the Bitcoin reserve legislation, the prospects for revisiting this issue would be postponed until the next legislative session in 2026, effectively closing the door on these proposals for the current year.
“Any bill not already on my desk will be vetoed until we have a serious, bipartisan funding solution that protects health care for Arizonans with disabilities,” she said on X on April 17.
Senate Bill 1025 focuses exclusively on Bitcoin investments, including provisions for securing the cryptocurrency in a segregated account within a potential federal Bitcoin reserve. Meanwhile, SB 1373 aims to create a Treasury-managed reserve fund utilizing crypto assets that are seized during criminal investigations, capped at 10% with provisions for asset loans to improve returns.
WHAT NOW for Arizona’s Bitcoin Reserve?
Both Reserve bills must be signed by Governor Hobbs.
Last week Hobbs signed one bill related to digital assets, and vetoed another.
It could go either way.
Which means NOW is the time to contact her office https://t.co/4cohncrir2
— Bitcoin Laws (@Bitcoin_Laws) April 28, 2025
The Latest in Crypto Legislation
Arizona’s proactive stance positions it as a frontrunner in the ongoing state-level race to adopt cryptocurrency legislation, as highlighted by Bitcoin Law’s State Reserve Race tracker. On April 18, the two crypto investment bills were sent to Governor Hobbs’ desk. Additionally, another piece of legislation known as HB 2906, which sought to expand a regulatory sandbox for crypto companies, was vetoed, while HB 2342, designed to safeguard Bitcoin mining from regulatory discrimination, was approved.
In parallel developments, North Carolina’s Bitcoin Reserve Bill HB 92 has also made progress, passing through its designated committees. On April 21, California Assembly Bill 1052, aimed at modernizing the approach to digital assets and formerly known as the Money Transmission Act, received bipartisan support in a recent committee vote.
As the situation unfolds, all eyes are on Governor Hobbs, as her decision could set a precedent for how states approach the burgeoning field of cryptocurrency investment.
