Arizona’s Crypto Reserve Bill Advances Amid Legislative Challenges

Arizona’s Strategic Digital Assets Reserve Bill is advancing toward final approval after House passage, aiming to establish a fund for seized digital assets. The state treasurer would manage the fund and invest up to 10% annually in digital assets. However, Governor Hobbs’ potential veto related to disability funding introduces uncertainty. Parallel legislation allows Bitcoin investments. Public companies also raised their Bitcoin holdings substantially in early 2025.

Arizona’s Strategic Digital Assets Reserve Bill (SB 1373) is progressing towards final approval, following its passage in the House on April 17. The bill proposes the establishment of a Digital Assets Strategic Reserve Fund, which will comprise digital assets acquired through criminal proceedings. This initiative marks a significant step in incorporating digital assets into the state’s financial infrastructure.

Under the bill, the Arizona state treasurer will manage the proposed reserve fund, with the authority to invest up to 10% of the total fund balance in digital assets each fiscal year. The treasurer may also lend out assets from the fund to generate returns, provided that such actions do not increase financial risk. However, Governor Katie Hobbs has threatened to veto all legislation until disability service funding is addressed, casting uncertainty over the bill’s future.

In addition to SB 1373, Arizona is also considering the Arizona Strategic Bitcoin Reserve Act (SB 1025), which allows investments of up to 10% of available assets in Bitcoin specifically. This bill has cleared the House Committee of the Whole and is awaiting a final vote as well.

Arizona is among states proactively pursuing legislation to incorporate crypto reserves, alongside Utah, which earlier passed Bitcoin-related legislation but later removed a reserve provision. Texas and New Hampshire have seen similar progress, with Texas Senate approving its Bitcoin reserve bill completing its legislative process.

In a broader context, publicly traded companies have shown increasing interest in Bitcoin, raising their holdings by 16.1% in Q1 2025, according to Bitwise. Corporate Bitcoin holdings reached approximately 688,000 BTC, with a combined value of $56.7 billion based on Bitcoin’s closing price at the quarter’s end. The number of public companies holding Bitcoin increased from 67 to 79, with 12 firms making first-time purchases.