Arizona’s much-talked-about Bitcoin reserve is now on the verge of a final vote, according to a recent update.
Its goal is to establish a state-level stockpile of cryptocurrency in order to diversify the state’s treasury.
The state would hold major cryptocurrencies of the likes of Bitcoin and XRP that were seized by law enforcement instead of auctioning them off.
Moreover, it makes it possible for the Treasurer to put up to 10% of state public funds into digital assets and even potentially loan them out to generate returns.
Hobbs’ veto
Notably, Governor Katie Hobbs vetoed nearly identical legislation in 2025. She cited financial and operational concerns to justify the rejection. In May 2025, she vetoed the bill (SB 1025) that would allow state retirement funds to invest in crypto.
Hobbs stated that Arizonans’ retirement funds should not be exposed to risks associated with digital assets.
In July 2025, she also vetoed the digital asset forfeiture bill (HB 2324) because it required seized assets to be transferred to the state reserve. She argued this would disincentivize local police and sheriffs from cooperating with state agencies.
Bitcoin reserve adoption
The U.S. government currently holds the largest known sovereign Bitcoin stockpile in the world (roughly 325,000 BTC). The massive pile of coins has been accumulated largely via law enforcement seizures.
When it comes to state-level reserves, New Hampshire recently became the first state to pass a law allowing up to 5% of certain public funds. Texas has already launched and actively seeded its own state Strategic Bitcoin Reserve. Meanwhile, states like Florida (via SB 1038) and Arizona are advancing their own bills, but progress remains rather underwhelming.
