Arizona Leads Race for State Crypto Reserves as Key Bill Nears Final Vote

TLDR

Table of Contents

Arizona’s Strategic Digital Assets Reserve Bill (SB 1373) passed the House Committee and is one vote away from Governor Hobbs’ desk
The bill would establish a fund of seized digital assets managed by the state treasurer, who could invest up to a 10% yearly
Governor Hobbs might veto the legislation as she’s currently vetoing all bills until disability funding is passed
A companion bill, the Arizona Strategic Bitcoin Reserve Act (SB 1025), which focuses only on Bitcoin, also awaits a full floor vote
Arizona is leading several states (Texas, New Hampshire, Utah) in the race to establish state-backed crypto reserves

Arizona is on the verge of making history in the cryptocurrency space. The state’s Strategic Digital Assets Reserve Bill (SB 1373) has cleared another hurdle, passing the House Committee of the Whole on April 17. This places the bill just one successful floor vote away from reaching Governor Katie Hobbs’ desk for approval.

ARIZONA Update:
Bitcoin Reserve Bill SB 1373 has been passed by the House Committee of the Whole (with a minor amendment).
The next step is Third Reading and final floor vote. pic.twitter.com/oOahjbZATR
— Bitcoin Laws (@Bitcoin_Laws) April 17, 2025

The legislation aims to create a Digital Assets Strategic Reserve Fund composed of digital assets seized through criminal proceedings. If passed, the state treasurer would manage these assets and have permission to invest up to 10% of the fund’s total money in any fiscal year into digital assets.

The bill also includes provisions allowing the treasurer to loan the fund’s assets to increase returns, provided such actions don’t heighten financial risks. This approach represents a forward-thinking stance on digital asset management at the state level.

Multiple Crypto Bills Advancing

SB 1373 isn’t moving through Arizona’s legislature alone. The Arizona Strategic Bitcoin Reserve Act (SB 1025) is also advancing and focuses exclusively on Bitcoin rather than broader digital assets. This companion bill would allow Arizona’s treasury and state retirement system to invest up to 10% of available funds into Bitcoin.

SB 1025 passed the House Committee of the Whole on April 1 and now awaits a full floor vote, much like its counterpart SB 1373. The two bills represent different approaches to the same goal: establishing state-backed cryptocurrency reserves.

There’s also speculation about potential merging with other crypto-related legislation. Julian Fahrer, founder of Bitcoin Laws and CEO of Apollo, suggested to Cointelegraph that SB 1373 might combine with SB 1062, which seeks to expand the definition of legal tender to include cryptocurrencies.

Potential Roadblocks Ahead

Despite the progress, these bills face possible roadblocks. Governor Katie Hobbs has recently pledged to veto all bills until the legislature passes legislation for disability funding. Her recent record supports this threat, as she has vetoed 15 bills sent to her desk in just the past week.

This political context creates uncertainty for Arizona’s crypto initiatives. Even with strong legislative support, the governor’s stance could delay or derail the establishment of these reserves.

Arizona isn’t alone in pursuing state-level cryptocurrency reserves. Utah, Texas, and New Hampshire have all advanced similar legislation. Utah passed Bitcoin legislation on March 7 but removed the key provision establishing a Bitcoin reserve in the final reading.

Texas saw its Senate pass a Bitcoin reserve bill on March 6, while New Hampshire’s House recently passed similar legislation. However, Arizona appears to be leading this race among states.

Experts like Fahrer believe the Texas bill may have the best chance of becoming law, noting it has faced the “fewest explicit roadblocks” so far. Nevertheless, Arizona’s progress puts it at the forefront of state-level crypto adoption efforts.

The push for state cryptocurrency reserves represents a growing trend of government entities exploring ways to integrate digital assets into their financial strategies. These initiatives could set precedents for how states manage and invest in cryptocurrencies going forward.

As Arizona’s bills move toward final votes, the crypto industry watches closely. The outcome could influence similar efforts across the country and potentially reshape how states approach digital asset management.

Should SB 1373 pass its final vote, all eyes will turn to Governor Hobbs to see if she follows through on her veto threat or allows Arizona to take this step toward cryptocurrency adoption.

For now, Arizona maintains its position as a leader in the state Bitcoin reserve race, with its legislation progressing further than comparable efforts in other states.

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