Arizona's Bitcoin Reserve Bill Advances, Nears Governor's Desk

Arizona's Strategic Digital Assets Reserve Bill (SB 1373) has made significant progress, passing the House Committee of the Whole on April 17, 2025. The bill now awaits a third and final reading before a full floor vote, bringing it one step closer to potential enactment.

SB 1373 proposes the creation of a Digital Assets Strategic Reserve Fund, consisting of digital assets seized through criminal proceedings and managed by the state's treasurer. The treasurer would be authorized to invest up to 10% of the fund's total assets in digital assets each fiscal year and could loan out these assets to generate returns, provided it doesn't increase financial risks.

However, the bill faces potential hurdles. Governor Katie Hobbs has pledged to veto all bills until the legislature passes a bill for disability funding. She has already vetoed 15 bills sent to her desk this week alone, raising concerns about the bill's future.

Despite these challenges, proponents remain optimistic. Julian Fahrer, founder of Bitcoin Laws and CEO of Apollo, expressed confidence that SB 1373 will pass the House. He also noted the possibility of merging it with another crypto-related bill, such as SB 1062, which aims to expand the definition of legal tender to include cryptocurrency.

If enacted, Arizona would join Utah in leading the U.S. in establishing state-backed crypto reserves. While Utah passed Bitcoin legislation on March 7, it scrapped the cornerstone provision establishing the Bitcoin reserve in the final reading. Arizona's progress positions it as a frontrunner in the state-level crypto reserve race.

As the bill moves through the legislative process, all eyes are on Arizona to see if it can overcome the governor's veto threat and pave the way for other states considering similar initiatives.

Author
Surabh Yadav