Arizona Advances Crypto Reserve Legislation to Full House Vote

Arizona is moving closer to establishing state-level crypto assets reserve after two key bills cleared the House Rules Committee on March 24.

The proposed legislation , if enacted, would enable the state to create strategic reserves of digital assets—leveraging both seized assets and public investments.

The two bills in question are Senate Bill 1373, known as the Strategic Digital Assets Reserve Bill, and Senate Bill 1025, titled the Arizona Strategic Bitcoin Reserve Act.

Arizona Crypto Reserve Bills Move to House Floor with GOP Majority Advantage

Both bills are now headed to the House floor for a full vote, where the Republican-controlled chamber holds a 33-27 majority, potentially giving the proposals a favorable path forward.

SB 1373 outlines the creation of a digital assets reserve composed of cryptocurrencies confiscated through criminal proceedings.

Arizona’s state treasurer would manage the fund, with strict investment guidelines. Specifically, no more than 10% of the reserve’s total value could be invested annually.

The bill also permits lending the assets to generate returns, as long as financial risks are not heightened.

SB 1025 focuses specifically on Bitcoin, allowing the state treasury and retirement system to allocate up to 10% of their available funds into the cryptocurrency.

It also includes provisions for securely storing the Bitcoin reserve in a segregated account within a potential federal Bitcoin reserve, should one be formed in the future.

Despite momentum in the legislature, the bills may face a significant challenge at the executive level.

Governor Katie Hobbs, a Democrat, has vetoed 22% of bills in 2024 so far—the highest rate among U.S. governors this year. Her stance on the digital asset legislation remains uncertain.

Arizona’s efforts put it at the forefront of a broader state-level movement to incorporate cryptocurrencies into public finance strategies.

More U.S. States Eye Bitcoin Reserve

Other states are following suit. Texas, for example, recently passed its own Strategic Bitcoin Reserve Bill (SB-21) in the Senate with a 25-5 vote. That bill now awaits a House vote and gubernatorial approval.

In response, Texas Representative Ron Reynolds has introduced a bill to cap the reserve size at $250 million.

Meanwhile, Oklahoma’s House approved Bitcoin Reserve Bill HB1203 with a 77-15 vote on March 25, sending it to the state Senate for consideration.

Utah also introduced similar legislation, but the excerpt about establishing a strategic reserve was ultimately removed.