Arizona has reportedly advanced two crypto bills, moving closer to making history in the digital asset space. These bills will help the US state to invest public funds in Bitcoin and create a digital asset reserve. If passed, the move will make Arizona the first US state to put taxpayer money directly into cryptocurrency.
Arizona Advances Crypto Bills Toward Full House Vote
The latest reports claim that Arizona is moving toward a full House vote on two major crypto bills. The proposals, SB1042 and SB1649, have cleared the House Rules Committee and are now heading to a full House vote.
It is worth noting that this development comes ahead of the next markup hearing for the CLARITY Act. This indicates that the US is heading ahead with key crypto regulations and bills, in an attempt to lead the global digital asset space.
Notably, the first crypto bill, SB1042, would allow the state to invest up to 10% of its public funds in cryptocurrencies. This gives Arizona a chance to modernize how it manages its treasury. While supporters see this as a crucial development, critics are still worried about the volatility of digital assets. They remain cautious of exposing public money to such high risks.
The second bill, SB1649, proposes creating a state-level digital assets reserve fund. The bill passed the US Senate Finance Committee in February. This would provide the state of Arizona an official means of holding and managing crypto, including those such as Bitcoin and XRP, which were confiscated by law enforcement agencies rather than being sold in an auction. The reserve fund would provide the state with the ability to consider loans as an investment strategy.
Recently, the US Senate also introduced the ‘Mined in America Act.’ The crypto bill intends to boost Trump’s Strategic Bitcoin Reserve plans and allow crypto mining.
Critics Raise Concerns Over State Crypto Investments
Not all Arizonians support the crypto bill. The state’s governor, Katie Hobbs, has previously vetoed similar bills, citing financial risks. In May 2025, she vetoed SB1025, which would have enabled state retirement funds to invest in crypto. The governor claimed that exposing Arizonians’ retirement savings to crypto was too risky. She added, “Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency.”
The governor has, in recent times, vetoed HB2324, which would have required crypto assets seized during crime investigations to be deposited into a state reserve. The governor claimed that this would discourage cooperation between local law enforcement agencies and state agencies.
The opponents of current crypto bills share similar sentiments, claiming that Arizonians’ funds would be too risky if invested in crypto, no matter how little. They also question whether Arizonians have the proper supervision required to ensure safety in crypto transactions. The debate, therefore, centers around whether Arizonians should be allowed to invest in crypto, considering how unpredictable crypto is.
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