In a pioneering effort that would make it the first state with a cryptocurrency reserve, Arizona is weighing a bold new initiative. Under the proposed legislation the state could spend up to 10% of its public dollars. This includes investments in crypto assets such as Bitcoin. Right now, Governor Katie Hobbs is deciding whether to sign or veto those bills. At the same time, the ups and downs of Bitcoin’s rollercoaster market have moved front and center in her calculations.
Considering Arizona keeps track of more than $30 billion in state assets, terms of the potential investment in cryptocurrency have struck up considerable debate. Republican legislators were the driving force behind the bills, which passed mostly on party lines in both chambers of the House and Senate. The ball is now in Governor Hobbs’ court, and her decision will decide the fate of this important initiative.
Republican state Senator Wendy Rogers, right, is a joint sponsor of one such piece of legislation.
The influence of former President Trump on Arizona Republicans is evident, with many seeking to mirror his policies within the state. Trump's recent announcement of a "strategic crypto reserve" that included Bitcoin, Solana, XRP, and other cryptocurrencies has seemingly inspired the Arizona GOP.
"Arizona Republicans are nothing if not attuned to what Trump is doing and always finding a way to replicate that here in the state." - Barrett Marson
Yet despite the excitement, there has been significant pushback from Trump’s proposal — including from some cryptocurrency supporters themselves.
Barrett Marson, a Republican political consultant based in Phoenix, believes the mercurial nature of crypto is likely to be a consideration for Governor Hobbs.
"Gov. Hobbs will undoubtedly consider how volatile bitcoin can be when she decides whether to sign or veto this effort." - Barrett Marson
Only time will tell what Governor Hobbs’ final decision will be, though Marson is not confident she will sign or veto the bills. Alex Tabet, a 2024 NBC News campaign embed, is following the decision down to the wire.
