Two strategic digital asset reserve bills in Arizona successfully advanced through the House Rules Committee on March 24 and are now positioned for a full vote on the House floor.
If enacted, these bills would enable Arizona to create strategic reserves of digital assets comprising existing assets seized during criminal cases as well as new public investments.
With Republicans holding a slight majority of 33-27 in Arizona’s House of Representatives, both measures have a solid possibility of passing.
Nonetheless, a potential challenge lies in the hands of the state’s Democratic governor, who has a track record of vetoing legislative proposals. She has rejected approximately 22% of bills in 2024, which is the highest veto rate among all state governors.
### Understanding Arizona’s Crypto Legislation
The two bills that have recently been endorsed by the House Rules Committee are the Strategic Digital Assets Reserve Bill (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025).
The Strategic Digital Assets Reserve Bill (SB 1373) aims to establish a reserve of digital assets acquired through criminal seizures, managed by the state’s treasurer.
This treasurer would be restricted to investing no more than 10% of the fund’s total value each fiscal year, though they could loan assets from the fund to enhance returns, as long as it does not elevate financial risks.
On the other hand, the Arizona Strategic Bitcoin Reserve Act (SB 1025) specifically focuses on Bitcoin (BTC). This bill seeks to permit Arizona’s Treasury and state retirement system to invest up to 10% of its available funds into Bitcoin.
Additionally, SB 1025 would allow the state’s Bitcoin reserve to be held in a secure, segregated account within a federal Bitcoin reserve if such a system is established.
While Arizona is currently seen as taking the lead in establishing a state-level digital asset reserve, other states are quickly following suit.
On March 6, the Texas Senate approved the Strategic Bitcoin Reserve Bill (SB-21) with a 25-5 vote. This bill still needs to clear the House and receive the governor’s approval to become law. Following this vote, a new proposal was introduced by Democratic Representative Ron Reynolds to impose a cap of $250 million on the previously unlimited reserve.
Utah recently passed Bitcoin legislation; however, the provision for creating a strategic reserve was removed in the final stages.
Meanwhile, the Oklahoma House passed its Bitcoin Reserve Bill HB1203 with a vote of 77-15 on March 25, and this bill is now headed to the state Senate.