Arizona is moving closer to establishing a state bitcoin reserve, with just one final vote remaining before it reaches the Governor’s desk for signing.
On April 17, the Arizona House Committee of the Whole, composed of 60 members, approved bill SB 1373, known as the “Strategic Digital Assets Reserve Bill.” The bill aims to create a strategic reserve fund of digital assets. This fund would be composed primarily of bitcoins and other cryptocurrencies seized during criminal proceedings and would be managed by the state treasurer.
The legislation would allow the Arizona treasurer to invest up to 10% of the total available funds in digital assets during each fiscal year. Additionally, the treasurer would be authorized to lend out assets from the fund to increase returns, provided this does not lead to increased financial risk.
The bill now requires just one final vote before being sent to Governor Katie Hobbs’ desk for official signature.
Alongside SB 1373, Arizona is also considering SB 1025, known as the “Arizona Strategic Bitcoin Reserve Act,” which focuses exclusively on Bitcoin. The proposal would allow the Arizona treasury and the state’s pension system to invest up to 10% of available funds in bitcoin.
SB 1025 has already passed the House Committee of the Whole and is now awaiting its final vote in the chamber. This dual legislative approach positions Arizona at the forefront among U.S. states in the race to establish a strategic bitcoin reserve.
Potential obstacles
Despite legislative progress, the path to final approval may face challenges. Governor Katie Hobbs recently announced her intention to veto all bills until the legislature passes a measure addressing disability funding.
Moreover, Hobbs has a track record of rejecting legislative proposals, having vetoed 15 bills in the current week alone.
