According to the Arizona Legislative official website two days ago a bill was introduced to make Bitcoin legal tender. The bill, which you may read by following the link above, is still in "inquiry" status, which means, if I'm not wrong, that it's just open to discussion for now.
US has quite a long history of blocking Bitcoin, with the latest rejections of Bitcoin-based ETFs being already notorious. But this was at the federal level. Individual states, as the Covid-19 pandemic showed us, can have dramatically opposed views. It seems we are just witnessing one of these individual states opposed views here.
So far, only El Salvador has made Bitcoin legal tender, and it has taken quite a lot of backlash and even official reprimanding from EMF. There were some rumors about Guatemala preparing similar legislation a few days ago, but this is on a completely different level.
If the law passes, I can imagine a very turbulent process between the state and federal authorities, about how this could be implemented - if ever.