Arizona Legislature pushes state Bitcoin reserves

The Arizona Legislature approved two bills on Monday, which could pave the way for the creation of the country’s first ever Bitcoin reserve.

The fate of the bill that imitates Donald Trump's move at the national level is now in the hands of Democratic Gov. Katie Hobbs.

Both led by Republicans and passed to largely through the state Capitol and Senate, which would allow the state to invest up to 10% of its public funds, such as digital assets like Bitcoin. According to a 2023 audit, Arizona has more than $30 billion in state-managed assets.

If Hobbes signs them into law, Arizona will become the first country in the United States to have its own cryptocurrency reserves. If Hobbes uses her veto on the bill, he will die.

NBC News contacted Hobbs' office to comment on how she planned to make the bill. A spokesperson declined to comment.

Republican state Sen. Wendy Rogers, who sponsored one of the legislation, said it was in the governor's best interest to sign the legislation. "Cryptocurrencies and Bitcoin have a big following nationwide and Arizona. They are very popular among youth and independents," Rogers said.

The bills passed in the Arizona Legislature follows news that President Donald Trump announced a “strategic crypto reserve” in March. But Trump's announcement has bothered some crypto supporters after the president posted on his social media platform, the reserve will include little-known cryptocurrencies, besides Bitcoin is more prone to fluctuations.

Republican members of the Arizona Legislature are getting clues from the president, said Barrett Marson, a Republican political adviser based in Phoenix. “Arizona Republicans are not suitable for what Trump does and always find a way to copy in the state,” Mason said.

Marson is not sure if Hobbes will sign the bill or veto it, but he believes the nature of cryptocurrency is likely to be a consideration. "Governor Hobbs will undoubtedly consider the volatility of Bitcoin's decision to sign or veto the effort," Mason said.

But Rogers wasn't worried. "I'm not worried about the volatility of Bitcoin, just because if you scale all the charts, it always adds value."

"I can't represent other cryptocurrencies because these currencies need to be analyzed separately," she said.