Two legislation that could lead to the establishment of the nation’s first state Bitcoin reserve were adopted by the Arizona Legislature on Monday.
Democratic Governor Katie Hobbs is now in charge of the bills, which replicate the national policies of President Donald Trump.
The state would be able to invest up to 10% of its public funds in digital assets like bitcoin under the two proposals, which were both led by Republicans and mainly approved along partisan lines in the House and Senate. A 2023 audit found that Arizona’s state-managed assets total more over $30 billion.
Arizona will be the first state to have its own cryptocurrency reserve if Hobbs signs them into law. The bills are doomed if Hobbs exercises her veto power.
Hobbs should approve the measure, according to Republican state senator Wendy Rogers, who sponsored one of the bills. Rogers said, “Crypto and bitcoin have a huge following nationwide and in Arizona. They are wildly popular with the youth and independents,” Rogers said, adding: “I certainly hope she signs it, because she can take credit and it will make her look good.”
Some cryptocurrency advocates were upset by Trump’s March announcement of a “strategic crypto reserve” when he stated on social media that the reserve would include less well-known, more volatile cryptocurrencies in addition to bitcoin.
GOP lawmakers in Arizona are following Trump’s lead, according to Barrett Marson, a Republican political consultant from Phoenix.
According to Marson, Arizona Republicans are extremely aware of what Trump is doing and constantly look for methods to duplicate it in their state.
Although he is unsure if Hobbs will sign the laws or reject them, Marson stated that he thinks the erratic nature of cryptocurrency will probably be taken into account.
“Gov. Hobbs will undoubtedly consider how volatile bitcoin can be when she decides whether to sign or veto this effort,” he stated.
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Rogers, though, doesn’t care. Before arguing that bitcoin is a “hedge against inflation,” she stated, “I do not have any concerns about the volatility of bitcoin simply because if you zoom out on all of the charts, it always increases in value.”
“I can’t speak for the other cryptocurrencies, as those need to be analyzed on an individual basis,” she stated.
