Arizona's Crypto Reserve Bill Advances to Full Floor Vote

Arizona set to vote on two bills to create digital asset reserves from seized assets and a dedicated Bitcoin reserve funded by state treasury and retirement system funds.

On March 24, two strategic digital asset reserve bills in Arizona passed the House Rules Committee and are now moving to the House floor for a full vote.

If enacted, the bills would allow Arizona to create strategic digital asset reserves, consisting of assets seized through criminal proceedings as well as newly invested public funds.

With Republicans holding a 33-27 majority in the Arizona House of Representatives, both bills have a strong chance of passing.

Source: Bitcoin Laws

However, according to Bitcoin Laws, the final obstacle may be the state's Democratic governor, Katie Hobbs. Hobbs has a history of vetoing bills, having blocked 22% of bills in 2024, the highest veto rate among state governors.

Arizona’s Two Crypto Bills Explained

Arizona’s House Rules Committee recently approved two bills: the Strategic Digital Assets Reserve Bill (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025).

• SB 1373 aims to establish a strategic digital asset reserve using assets seized through criminal proceedings. The state treasurer would manage the reserve, with a restriction that no more than 10% of the fund’s total value can be invested each fiscal year. The treasurer would also have the option to loan the assets to boost returns, provided it doesn’t increase financial risks.

• SB 1025 focuses specifically on Bitcoin. It proposes that Arizona’s Treasury and state retirement system be allowed to invest up to 10% of available funds into Bitcoin. The bill also allows the state’s Bitcoin reserves to be stored in a secure, segregated account within a federal Bitcoin reserve, should one be established.

While Arizona is currently leading the charge to establish a state-based digital asset reserve, several other states are quickly following suit.

On March 6, the Texas Senate passed the Strategic Bitcoin Reserve Bill (SB-21) with a 25-5 vote. The bill still needs to pass the House and receive the governor's signature before becoming law. After this vote, Democrat Representative Ron Reynolds introduced a new bill to cap the previously uncapped reserve at $250 million.

Utah also recently passed Bitcoin legislation, though references to establishing a strategic reserve were removed at the last minute.

Meanwhile, the Oklahoma House passed its Bitcoin Reserve Bill (HB1203) with a 77-15 vote on March 25, and the bill will now move to the state’s Senate.