Arizona is moving closer to creating a Bitcoin reserve funded with public funds, but the final decision will rest with Governor Katie Hobbs.
Arizona could become the first U.S. state to establish a strategic Bitcoin reserve thanks to two bills that have passed another legislative hurdle. On March 24, the Arizona House Rules Committee approved bills SB 1373 and SB 1025, which will now be put to a vote by the full House.
If passed, the two laws would allow the state to accumulate Bitcoin and other digital assets through public funds and create a reserve of digital assets acquired via asset forfeiture in criminal proceedings.
The two bills in Arizona
The two bills under consideration are:
- Digital Assets Strategic Reserve Fund (SB 1373): this bill proposes the creation of a strategic digital asset reserve consisting of cryptocurrencies seized in judicial proceedings. The state treasurer would manage the reserve, with a 10% annual investment cap and the ability to lend digital assets to generate additional returns, provided this does not increase financial risks.
- Arizona Strategic Bitcoin Reserve Act (SB 1025): this bill allows Arizona to allocate up to 10% of available state treasury and pension system funds for the purchase of Bitcoin.
Chances of approval?
Currently, Republicans hold a 33-27 majority in the Arizona House, increasing the likelihood that both bills will pass. However, the main obstacle may be Democratic Governor Katie Hobbs, who vetoed 22% of bills in 2024, more than any other U.S. governor.
Other states following Arizona’s lead
Arizona is not the only state moving in this direction. Texas has approved its own Strategic Bitcoin Reserve Bill (SB-21) in the Senate, now awaiting a vote in the House and the governor’s signature. In Oklahoma, the Bitcoin Reserve Bill HB1203 has gained wide approval in the House (77-15) and is now heading to the Senate. Utah has also discussed similar proposals but removed provisions for creating a Bitcoin reserve.
