YEREVAN (CoinChapter.com) — Arizona is one step closer to creating a state-managed digital asset reserve after two bills passed the House Rules Committee on March 24.
The Strategic Digital Assets Reserve Bill (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025) are now headed for a full House vote. If passed, they would allow the state to establish crypto reserves using seized digital assets and allocated public funds.
The Arizona crypto reserve proposal includes two key components. The first involves a digital asset reserve consisting of cryptocurrency seized in criminal proceedings. Meanwhile, the second focuses on Bitcoin investment, permitting state funds to be allocated to Bitcoin. With Republicans holding a 33-27 majority in the House, both bills stand a strong chance of moving forward. However, Governor Katie Hobbs, who has vetoed 22% of bills in 2024, could ultimately decide their fate.
SB 1373 and Arizona’s Digital Asset Reserve
The SB 1373 bill outlines plans to establish a digital asset reserve under the control of Arizona’s Treasurer. The reserve would comprise seized digital assets, ensuring Arizona can manage and utilize these funds. Under the bill, the treasurer can invest up to 10% of the total value annually, allowing the reserve to grow while maintaining financial stability. The bill also allows loaning digital assets to generate additional returns, provided the process does not pose financial risks.
This proposal would place Arizona among the first states to formalize a digital asset reserve, managing confiscated cryptocurrency assets under strict regulations. The treasury would oversee all transactions, ensuring that the reserve operates within the legal framework set by the state.
SB 1025 and Arizona’s Bitcoin Reserve
The SB 1025 bill focuses on Bitcoin investment within the Arizona Treasury and state retirement system. If approved, the state could invest up to 10% of its available funds in Bitcoin, creating a segregated reserve to store holdings securely. The bill also includes provisions for a federal Bitcoin reserve, allowing Arizona’s funds to be stored in such an entity if one is ever established.
This initiative aims to provide a structured approach to Bitcoin investment, integrating it into state financial management while maintaining oversight. Arizona would join other states exploring Bitcoin reserves as part of their financial strategy.
Other States Advancing Crypto Reserve Policies
Arizona is not the only state pursuing a state-backed digital asset reserve. Other states have taken similar steps, with Texas, Oklahoma, and Utah making progress on Bitcoin-related legislation. The Texas Senate passed its own Bitcoin reserve bill (SB-21) on March 6, but the measure still requires approval from the House and Governor.
A separate bill introduced by Rep. Ron Reynolds proposes capping the Texas Bitcoin reserve at $250 million. On March 25, Oklahoma lawmakers voted 77-15 in favor of the HB1203 Bitcoin reserve bill, sending it to the state’s Senate for further review. Meanwhile, Utah passed Bitcoin legislation but removed key references to a strategic reserve before final approval.
What’s Next for Arizona’s Crypto Reserve Bills?
The Arizona House vote will determine whether the state moves forward with a crypto reserve policy. With Republican backing, both bills can pass, but the final decision rests with Governor Katie Hobbs. Given her history of blocking legislation, the outcome remains uncertain.