The Arizona Strategic Digital Assets Reserve Bill (SB 1373) has passed the House Committee and is near approval. It aims to create a fund for digital assets from criminal proceedings, with investment provisions. However, Governor Hobbs threatens to veto pending bills. Concurrently, Arizona is advancing the Bitcoin Reserve Act (SB 1025), allowing treasury investment in Bitcoin.
On April 17, Arizona’s Strategic Digital Assets Reserve Bill (SB 1373) successfully passed the House Committee of the Whole, bringing it closer to receiving gubernatorial approval. The bill aims to create a Digital Assets Strategic Reserve Fund comprised of digital assets obtained through criminal proceedings, with management assigned to the state’s treasurer.
The treasurer would be authorised to invest up to 10% of the fund’s total assets each fiscal year into digital assets and loan these assets to enhance returns, provided that the associated financial risks do not increase. However, Governor Katie Hobbs has expressed intentions to veto all bills until disability funding legislation is passed, which could hinder SB 1373’s progression.
Additionally, Arizona is positioning itself as a frontrunner in the state Bitcoin reserve initiative with the concurrent Arizona Strategic Bitcoin Reserve Act (SB 1025). This bill specifically permits investments of up to 10% of available funds into Bitcoin by Arizona’s treasury and state retirement system. SB 1025 was approved by the House Committee of the Whole on April 1 and is pending a full floor vote.
Other states, such as Utah, Texas, and New Hampshire, have introduced similar Bitcoin legislation, although Utah removed a critical provision regarding the Bitcoin reserve in its final reading. In contrast, both Arizona bills could solidify the state’s leadership in the realm of cryptocurrency reserves.
