Arizona’s SB 1373 Moves Closer to Establishing a Crypto Reserve

Arizona’s SB 1373 aims to establish a Digital Assets Strategic Reserve Fund, allowing investment in seized digital assets. The bill is just one vote away from the governor’s consideration, but could face a veto from Governor Hobbs. Additionally, SB 1025 focuses on investing in Bitcoin. Arizona is poised to lead the US in crypto reserves amid similar efforts from other states.

Arizona is at the forefront of establishing a state-backed cryptocurrency reserve, with the Arizona House Committee of the Whole approving SB 1373 on April 17. This significant legislation aims to create a Digital Assets Strategic Reserve Fund, pending just one floor vote before being sent to the governor.

If enacted, SB 1373 would empower Arizona’s state treasurer to manage a reserve consisting of confiscated digital assets. The treasurer could invest up to 10% of the fund annually in these assets, with the option to loan them out for enhanced returns, provided that it does not increase financial risk.

However, challenges exist, particularly from Governor Katie Hobbs, who has indicated intentions to veto the bill unless disability funding is approved by lawmakers. She has already rejected 15 bills in the current week.

In addition to SB 1373, Arizona is also pursuing financial innovation via SB 1025, which focuses on creating an Arizona Strategic Bitcoin Reserve. This bill, which the House Committee of the Whole passed earlier this month, allows the state treasury to allocate up to 10% of available funds into Bitcoin (BTC).

Amidst other states like Utah, Texas, and New Hampshire considering similar initiatives, Arizona is uniquely positioned, with only one vote required to enact this crypto reserve. While some states have retracted their proposals, Arizona may soon become the first in the nation to establish a formal crypto reserve, capturing significant attention as the final vote approaches.