Arizona Moves Ahead in Crypto Reserve Race, Awaits Governor's Decision

Arizona has made significant strides in the competition among U.S. states to become the first to establish a crypto reserve as part of their fiscal strategy, with legislation gaining approval from a majority of Republican lawmakers.

The fate of this legislation now rests with Governor Katie Hobbs, a Democrat, who has vetoed numerous bills this session. If she vetoes this one as well, the matter will be closed for the year. Hobbs has been involved in a budget dispute with Republican lawmakers, and her stance on the crypto reserve bill remains uncertain.

If approved, Arizona's inclusion of digital assets in its public-funds investments could surpass the U.S. Treasury Department's efforts, which are still awaiting a full accounting of U.S. holdings before federal officials can proceed with building the reserve as called for by President Donald Trump.

The Arizona House of Representatives passed the crypto reserve effort in a 31-25 vote on Monday, with three Democrats voting in favor. This move positions Arizona ahead of other states considering similar measures, such as New Hampshire, where a bill has passed its House.

Governor Hobbs had previously stated that any bill not already on her desk would be vetoed until a serious, bipartisan funding solution that protects healthcare for Arizonans with disabilities is reached. However, this matter may have been resolved with her recent signature on a disabilities-funding bill.

This development in Arizona highlights the growing interest among U.S. states in integrating digital assets into their financial strategies. The outcome of this legislation will be closely watched, as it could set a precedent for other states considering similar measures.