TLDR

Arizona’s Strategic Digital Assets Reserve Bill (SB 1373) passed House Committee, needs one more vote to reach governor
Bill would create a fund of seized digital assets managed by state treasurer who could invest up to 10% yearly
Governor Katie Hobbs may veto the bill, having recently vetoed 15 bills while demanding disability funding legislation
Arizona is also considering SB 1025 (Strategic Bitcoin Reserve Act) specifically for Bitcoin investments
Arizona leads several states (Texas, Utah, New Hampshire) in the race to establish state-backed crypto reserves

Arizona is poised to become the first state to establish a government-backed cryptocurrency reserve after a major legislative advancement. The Strategic Digital Assets Reserve Bill (SB 1373) passed the Arizona House Committee of the Whole on April 17, moving it just one vote away from the governor’s desk.

The bill would create a Digital Assets Strategic Reserve Fund composed of digital assets seized through criminal proceedings. This fund would be managed by the state treasurer, who would have authority to invest up to 10% of the fund’s total monies in digital assets each fiscal year.

Under the proposed legislation, the treasurer could also loan the fund’s assets to increase returns, as long as such actions don’t increase financial risks. This approach aims to leverage seized crypto assets for state benefit rather than simply liquidating them.

ARIZONA Update:

Bitcoin Reserve Bill SB 1373 has been passed by the House Committee of the Whole (with a minor amendment).

The next step is Third Reading and final floor vote. pic.twitter.com/oOahjbZATR

— Bitcoin Laws (@Bitcoin_Laws) April 17, 2025

Potential Roadblocks Ahead

Despite the bill’s progress, its future remains uncertain. Arizona Governor Katie Hobbs has recently pledged to veto all bills until the legislature passes a bill for disability funding. Hobbs has already vetoed 15 bills sent to her desk this week alone.

This political standoff could delay or derail SB 1373, regardless of its bipartisan support. Julian Fahrer, founder of Bitcoin Laws and CEO of Apollo, told Cointelegraph that while he expects the bill to pass the House, it might merge with another crypto-related bill like SB 1062, which aims to expand the definition of legal tender to include cryptocurrency.

The governor’s recent vetoing spree suggests that even with full legislative approval, the path to becoming law remains challenging for this crypto initiative.

Multiple Crypto Bills Moving Forward

SB 1373 isn’t the only crypto-related bill making progress in Arizona. The state is also considering the Arizona Strategic Bitcoin Reserve Act (SB 1025), which focuses exclusively on Bitcoin rather than broader digital assets.

This Bitcoin-specific bill proposes allowing Arizona’s treasury and state retirement system to invest up to 10% of available funds into Bitcoin. Like SB 1373, it has also passed the House Committee of the Whole and awaits a full floor vote.

The dual-track approach demonstrates Arizona’s heightened interest in incorporating digital assets into state finance. By pursuing both a general crypto reserve and a Bitcoin-specific reserve, Arizona lawmakers are covering multiple bases in the evolving digital asset landscape.

Several other states are also exploring similar legislation. Utah passed Bitcoin legislation on March 7 but removed the key provision establishing a Bitcoin reserve in the final reading. The Texas Senate passed a Bitcoin reserve bill on March 6, while New Hampshire’s House recently approved comparable legislation.

Despite these competing efforts, Arizona appears to be leading the race. Fahrer believes that while Arizona has made the most progress, the Texas bill has the best chance of becoming law because it has faced the “fewest explicit roadblocks” so far.

If either SB 1373 or SB 1025 passes into law, Arizona would set a precedent for state-level crypto adoption in the United States. This would mark a major step toward mainstream acceptance of digital assets within government financial structures.

The final vote on SB 1373 will likely determine whether Arizona becomes the first state to establish a formal cryptocurrency reserve or whether political complications will delay this innovative approach to state finance.

The post Arizona Leads State Race for Crypto Reserves as Key Bill Clears House Committee appeared first on CoinCentral.

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Filed under: News - @ April 18, 2025 8:27 am