Arizona’s Crypto Reserve Bill Advances Toward Final House Vote

By Rony Roy
April 18, 2025, at 6:47 AM UTC
Edited by Dorian Batycka

Arizona is moving closer to potentially becoming a pioneer in state-backed digital asset reserves as the Strategic Digital Asset Reserve Bill (Senate Bill 1373) heads toward a final vote in the House. On April 17, the bill successfully cleared the Committee of the Whole, making significant progress in its journey toward becoming law.

Overview of SB 1373

The proposed legislation aims to establish a fund consisting of digital assets that have been seized during criminal proceedings. Under this framework, the state treasurer would be responsible for managing the fund and would have the authority to invest up to 10% of the fund’s total value in digital assets each fiscal year. Additionally, the treasurer would have the flexibility to loan out the fund’s holdings, provided that such actions do not heighten the fund’s financial risk profile.

Arizona’s initiative positions it alongside states like Texas and New Hampshire in the competition to create state-backed digital asset reserves. This legislative movement signifies Arizona’s ambition to embrace the growing digital currency sector.

Related Legislation

In conjunction with SB 1373, lawmakers are also considering SB 1025, a bill that focuses exclusively on Bitcoin. This legislation would allow Arizona’s treasury and retirement systems to allocate up to 10% of available funds into Bitcoin and includes stipulations for storing the cryptocurrency in a segregated federal reserve account. SB 1025 passed the Committee of the Whole earlier this month and is awaiting its final vote.

Governor’s Stance and Potential Roadblocks

Despite the promising advances for these bills, both face potential challenges at the governor’s office. Governor Katie Hobbs, a Democrat, has issued a warning that she will veto all legislation until lawmakers address a significant funding shortfall for disability services, totaling $122 million. In a recent post on social media platform X, Hobbs criticized the funding proposals from the Republican-controlled legislature as “unserious” and a “complete nonstarter.”

Currently, she has vetoed 15 bills this week, leading to the highest veto rate among U.S. governors in 2024, having rejected over 20% of all proposed legislation, most of which was from Republican lawmakers.

Broader Crypto Initiatives in Arizona

Arizona’s push for digital asset legislation is part of a larger strategy to incorporate cryptocurrency into the state’s economic framework. Earlier this year, lawmakers introduced House Bill 2387, aimed at mitigating Bitcoin ATM fraud. This bill seeks to enforce mandatory operator licensing, transaction caps, and refund policies to protect users from scams.

Conclusion

With SB 1373 moving steadily toward a final vote, Arizona is carving out a strategic role in the realm of cryptocurrencies. The outcome of these legislative efforts remains uncertain, particularly with Governor Hobbs’ conditions looming. However, Arizona’s legislative moves could set a meaningful precedent in the integration of digital assets into state financial operations.

For further updates on Arizona’s digital asset legislation and cryptocurrency developments, stay tuned.

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