- Arizona’s SB 1373 crypto reserve bill passed committee and now awaits a final floor vote.
- The bill allows up to 10% of seized digital assets to be invested or loaned by the treasurer.
- Governor Hobbs may veto the bill amid a standoff over disability funding legislation.
Arizona is just a vote away from setting up a government’s digital assets reserve. On April 17, SB 1373 was approved by the state House Committee of the Whole. The bill now moves to a final floor vote. The bill, if passed, will be sent to Governor Katie Hobbs for approval. The bill lets Arizona’s treasury handle a digital asset fund generated from assets seized during criminal cases.
Strategic Reserve Bill Advances Despite Potential Veto
SB 1373 outlines the creation of a Digital Assets Strategic Reserve Fund. The fund would be overseen by Arizona’s treasurer. Each year, up to 10% of the fund could be invested in digital assets. Also, the treasurer may lend the digital assets out to generate returns, as long as that does not make the asset more risky. The bill contains provisions which seek to protect financial safety while at the same time enabling greater choice of investment options.
However, the bill faces a political hurdle. Governor Hobbs recently vowed to veto all legislation until lawmakers pass a disability funding bill. She has already vetoed 15 bills this week. Despite this, industry observers expect SB 1373 to pass the House. There is also speculation it could merge with SB 1062, another crypto bill that seeks to recognize cryptocurrency as legal tender.
Arizona Leads in State-Level Bitcoin Initiatives
SB 1373 is not the only crypto focused legislation to make its way through Arizona‘s legislature. Similarly, on April 1, SB 1025, the Arizona Strategic Bitcoin Reserve Act, was passed out of the Arizona House Committee of the Whole. SB 1025 specifically addresses Bitcoin. It would permit funds of up to 10 per cent of Arizona’s treasury and state retirement system to be invested in Bitcoin.
Both bills are part of a broader push by states to explore crypto reserves. Utah, Texas and New Hampshire have introduced similar legislation in recent months. Utah passed Bitcoin legislation on March 7. However, lawmakers removed the provision for a Bitcoin reserve in the final version. Texas passed a Bitcoin reserve bill through its Senate on March 6. New Hampshire passed a similar bill through its House.
Among all these states, Arizona has made the most progress. SB 1373 and SB 1025 are both one step away from becoming law. Julian Fahrer, founder of Bitcoin Laws and CEO of Apollo, believes the Texas bill faces fewer barriers. Still, Arizona is viewed as a front-runner in developing state-backed digital asset reserves.
The proposed bills essentially represent a shift in how they deal with digital assets. An Arizona bill if passed, would make the state one of the first to handle a cryptocurrency fund. The bills also show growing interest in digital asset management at state level. Assets seized in the course of criminal investigations would create these funds.
SB 1373 then awaits a final floor vote in the Arizona House. If passed, the bill will go to Governor Hobbs for approval or veto. However, the governor’s recent statement about vetoing bills adds uncertainty for the future of the bill. Further legislation could get stalled until there is approval on disability funding.
