Arizona Passes Two Historic Bitcoin Reserve Bills, Awaiting Governor Hobbs' Decision

The Arizona House of Representatives has passed two historic Strategic Bitcoin Reserve bills. These include the Digital Assets Strategic Reserve Fund (SB 1371) and the Public Monies; Investment; Virtual Currency (SB1025), which have now advanced to Gov. Katie Hobbs’ desk for a possible approval.

Arizona Remains Averse, Both Sens SBR Bills Clear Lower Chamber

The two digital asset bills are now one step closer to becoming the first US state SBR bills, as they passed the House after about a month of being passed by the Senate. The bills had always looked good, especially after they passed out of the House Rules Committee with lawmakers declaring them “in good form and constitutional.”

On Monday, SB 1025 obtained 31 Ayes and 24 Nays as it passed the lower legislative chamber in a typical partisan vote. Similarly, SB1371, the Digital Assets Strategic Reserve Fund bill, secured 37 votes in favor and 19 Nays from the House floor.

The two Senate bills work in tandem. SB 1371 authorizes the creation of a Digital Asset Strategic Reserve Fund in Arizona under the management of the state Treasurer. The Reserve funding would be sourced from seized digital assets and other designated funds, to be held via ETPs (Exchange Traded Products) or state-of-the-art custody solutions.

Meanwhile, SB 1025 enables the state Treasurer to invest part of the state’s public funds, including retirement funds, in virtual assets. The legislation allows the state to invest a maximum of 10% of its available monies in digital assets, especially Bitcoin.

The public monies investment bill also makes provision for a shared Strategic Bitcoin Reserve with the US government. Once the US Treasury creates an SBR, the state would allow its treasury to store digital assets in a special, segregated account within the national stash.

Gov. Hobbs Has Five To Ten Days To Act On The Bills

Following the successful passage of the bill, the question remains: what next? Governor Hobbs has a history of clashing with the Republican-led legislature, and there is still much uncertainty surrounding recent legislation after Hobbs threatened a massive veto spree unless lawmakers pass a certain healthcare bill catering to disabled people.

The governor has approximately five days, excluding Sundays, to sign the bills from the time they passed the House and advanced to her desk. However, there is a possibility that the legislature could adjourn, which gives her 10 days to approve or veto the bills.

If Governor Hobbs takes no action within this timeline, the bills will automatically become law. But if she vetoes them, the legislature could try to overrule the veto with at least two-thirds majority votes in both chambers, which is nearly impossible, considering the bills’ typical party-line voting pattern.

If the governor signs the bill, Arizona will be the first US state to enact Strategic Bitcoin Reserve legislation, setting a strong pro-crypto precedent for other states.