Arizona lawmakers have moved closer to setting up a digital assets reserve with a recent legislative approval, although it faces a potential veto from Democratic Governor Katie Hobbs. The bill passed largely along party lines, with both chambers approving the plan to establish a virtual assets reserve, a move not yet mirrored by any other state this year. While several states, including New Hampshire, are considering similar legislation, Arizona's initiative may proceed faster than the federal government's efforts to account for U.S. holdings before creating a Bitcoin reserve. Governor Hobbs has publicly stated she would veto any new bills until a budget issue, particularly concerning funding for constituents with disabilities, is settled. The situation remains tense as she considers the implications of the bill on her party's stance. The outcome could set a precedent for how states engage with cryptocurrency in fiscal planning, particularly amid a rising interest in digital assets.

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