Arizona’s push to develop state-run cryptocurrency reserves gained momentum this week. One bill cleared a crucial hurdle when the Strategic Digital Assets Reserve Bill (SB 1373) moved through the upper chamber of the House Committee of the Whole on April 17. It is set for a final vote before potentially reaching Governor Katie Hobbs.
Bill Would Create Fund From Seized Crypto Assets
SB 1373 would create a Digital Assets Strategic Reserve Fund comprised of digital assets seized in a criminal proceeding. The state treasurer would manage this fund and could invest up to 10% of its total amount into digital assets each year.
Under the law, Arizona’s treasurer would also be able to lend the assets of the fund to enhance returns. The lending power is accompanied by the requirement that it should not enhance financial risks.
Source: Arizona House Committee of the Whole.
Governor’s Veto Threat Hangs Over Legislation
The bill’s passage can be derailed even if it clears its last House vote. Governor Hobbs recently threatened to veto all bills until lawmakers enact legislation for disability funding. Her history doesn’t look good for the crypto bill – she has already vetoed 15 bills that landed on her desk this week.
Julian Fahrer, CEO of Apollo and founder of Bitcoin Laws, said SB 1373 will pass the House. However, he intimated it could be merged with another crypto-related bill, SB 1062, that would broaden the definition of legal tender to include cryptocurrency.
🇺🇸 ARIZONA’S STRATEGIC #BITCOIN RESERVE BILL PASSES FINAL COMMITTEE
WHAT A TIME TO BE ALIVE!!! pic.twitter.com/OTRohhG5gt
— Vivek⚡️ (@Vivek4real_) April 17, 2025
Second Bitcoin-Specific Bill Also Moving Forward
Arizona legislators are pushing a second cryptocurrency bill in addition to SB 1373. The Arizona Strategic Bitcoin Reserve Act (SB 1025) is targeted at investing in Bitcoin exclusively and not on a wider group of digital currencies.
This legislation would allow Arizona’s state retirement system and treasury to invest as much as 10% of available funds into Bitcoin investments. SB 1025 passed the House Committee of the Whole on April 1 and now is waiting for its own floor vote.
Arizona Leads Multi-State Race For Crypto Reserves
According to recent legislative advancements, Arizona is at the forefront of multiple states in pursuing cryptocurrency reserve bills. Utah approved Bitcoin bills on March 7 but eliminated the vital provision of a Bitcoin reserve in its third reading.
Image: VectorStock
The Texas Senate passed a similar Bitcoin reserve bill on March 6, and New Hampshire’s House recently passed similar legislation. While Arizona seems to be leading the charge on moving these bills forward, Fahrer thinks the Texas bill has the best shot at becoming law, citing it having encountered the “fewest explicit roadblocks” to date.
These state initiatives are part of an emerging trend of government institutions seeing cryptocurrency as an integral part of their investment portfolios, yet political challenges are yet to be overcome. If signed into law, the bills would signal a paradigmatic shift in how state governments invest and manage digital assets.
Featured image from Pexels, chart from TradingView
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