Arizona’s Strategic Digital Assets Reserve Bill (SB 1373) has passed the House Committee and is nearing final approval. This legislation establishes a reserve fund for digital assets from criminal proceedings, managed by the state treasurer. However, Governor Katie Hobbs may veto it pending disability funding. The state is also advancing a Bitcoin-specific bill, SB 1025, while competing states pursue similar crypto measures.
Arizona’s House Committee of the Whole has passed the Strategic Digital Assets Reserve Bill (SB 1373), moving it closer to becoming law, with one final vote required before reaching the governor. The bill aims to create a Digital Assets Strategic Reserve Fund, which will be comprised of digital assets obtained through criminal proceedings, and managed by the state treasurer.
Under the proposed legislation, the treasurer would have the authority to invest up to 10% of the fund’s total amount in digital assets annually. Additionally, the treasurer may loan out assets from the fund to enhance returns, contingent upon maintaining prudent risk levels.
However, the advancement of SB 1373 may hit a roadblock due to Governor Katie Hobbs’ recent commitment to veto all pending bills until disability funding legislation is approved. Governor Hobbs has a track record of vetoing numerous bills, having rejected 15 just this past week.
Arizona is positioning itself as a frontrunner in the emerging Bitcoin reserve landscape, with SB 1373 coexisting with the Arizona Strategic Bitcoin Reserve Act (SB 1025). This bill specifically allows allocations of up to 10% of the treasury and state retirement system funds into Bitcoin investments, having also cleared the House Committee.
While several states are exploring similar Bitcoin legislation, Utah recently abandoned its pivotal Bitcoin reserve provision, and Texas, alongside New Hampshire, has also advanced comparable bills this month. As this legislative momentum unfolds, it sets the stage for evolving crypto asset governance at the state level.
