- Arizona’s House Rules Committee advanced SB 1373 and SB 1025, enabling a crypto reserve.
- SB 1373 allows up to 10% investment from confiscated assets, while SB 1025 targets Bitcoin.
- Governor Katie Hobbs, with a 22% veto rate, may pose the final legislative hurdle.
Arizona is moving closer to creating a state-backed digital asset reserve. Two bills, SB 1373 and SB 1025, cleared the Arizona House Rules Committee on March 24 and are now set for a full vote on the House floor. If passed, these bills would allow the state to establish reserves made up of confiscated digital assets and public funds.
Both bills have a strong chance of passing in the Republican-controlled House of Representatives, where the party holds a 33-27 majority. However, the final challenge may come from Democratic Governor Katie Hobbs, who has vetoed 22% of all bills in 2024, the highest rejection rate of any U.S. governor.
Breaking Down Arizona’s Crypto Reserve Bills
The Strategic Digital Assets Reserve Bill (SB 1373) focuses on digital assets obtained through criminal proceedings. Sponsored by Republican Senator Mark Finchem, this bill proposes that the state treasurer manage the reserve. The treasurer would be allowed to invest up to 10% of the fund’s value each year and could loan assets to increase returns—so long as the strategy does not heighten financial risk.
Meanwhile, the Arizona Strategic Bitcoin Reserve Act (SB 1025) takes a more direct approach to Bitcoin. If passed, it would allow Arizona’s Treasury and state retirement system to invest up to 10% of available funds in Bitcoin. Additionally, it includes a provision for storing the state’s Bitcoin in a segregated federal Bitcoin reserve, should one be created.
If the United States Secretary of the Treasury establishes a strategic Bitcoin reserve for the storage of government Bitcoin holdings, a public fund may store the virtual currency holdings of the public fund in a secure segregated account within the strategic Bitcoin reserve,” the bill states.
Arizona Leads, but Other States Are Catching Up
Arizona is not alone in its pursuit of state-backed digital reserves, as other states are also moving in the same direction. Oklahoma’s House recently approved its Bitcoin Reserve Bill HB1203 by a vote of 77-15 on March 25. The bill will now move to the state Senate for consideration.
Earlier this month, the Texas Senate passed the Strategic Bitcoin Reserve Bill (SB-21) with a 25-5 vote. The bill awaits approval from the House and governor, while Democratic Representative Ron Reynolds has proposed capping the reserve at $250 million.
Meanwhile, Utah recently passed a Bitcoin-related law, but the provision for creating a strategic reserve was removed at the last minute. Senator Kirk A. Cullimore, who sponsored the bill, admitted that concerns about early adoption and cryptocurrency’s risks played a key role in the decision.
We had a lot of concern about being early adopters—whether it was a good idea, whether it was risky, and differing personal opinions on cryptocurrency investment potential,” he said.
Despite the momentum, hesitation remains strong among U.S. lawmakers. A recent CoinDesk survey revealed that fewer than half of state legislators would support government-backed crypto investments unless federal regulations provide clearer guidance. The main concerns are volatility, long-term stability, and the lack of federal oversight.
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