- Arizona approves two Bitcoin reserve bills, allowing public funds to invest up to 10% in digital assets like BTC.
- Senate Bill 1373 proposes a Digital Assets Strategic Reserve Fund with strict custody and investment guidelines.
- SB1062 seeks to classify Bitcoin as legal tender, amending Arizona’s tax code to support cryptocurrency use statewide.
Arizona is positioning itself as a national leader in cryptocurrency policy after two major Bitcoin-related bills cleared the state House Commerce Committee this week. This latest move places the state ahead of others in the strategic Bitcoin reserve race, outpacing Utah after it withdrew its own proposal.
Arizona Pushes Forward with Bitcoin Reserve and Legal Tender Bills
The Arizona House Commerce Committee recently voted on three key pieces of crypto legislation. Two of those pitches, Senate Bill 1025 (SB1025) and Senate Bill 1373 (SB1373 focus on creating strategic digital asset reserves. Meanwhile, the Bill 1062 measure emphasizes the recognition of BTC and other crypto assets as legal tender in the state.
SB1025, tagged the “Arizona Strategic Bitcoin Reserve Act,” passed the committee in a 6–4 vote, with overwhelming partisan support. The bill is spearheaded by Republican Senator Wendy Rogers and proposes allowing state public funds to invest up to 10% of their portfolios in Bitcoin and other cryptocurrencies. Mainly, the funds listed include those managed by the treasurer or the retirement system.
The bill also provides a legal structure for how such digital holdings should be managed, including the use of a federal Bitcoin reserve account if established by the U.S. Treasury. Its goal is to diversify the state’s investments while positioning Arizona for a digital financial future.
New Digital Asset Reserve Fund
The committee also voted 6–4 in favor of SB1373, pitched by Congressman Mark Finchem. It proposes the creation of a Digital Assets Strategic Reserve Fund, which would be composed of seized digital currencies and legislatively allocated funds.
Managed by the state treasurer, the fund would allow for up to 10% investment annually. The bill includes strict custody requirements, such as multi-party governance, encrypted environments, exclusive key access, and disaster recovery systems. Assets in the fund could also be loaned out to generate revenue, provided it doesn’t increase financial risk for the state.
In addition to the reserve bills, SB1062 also passed through committee with a 6–4 vote. This legislation aims to expand the legal definition of “legal tender” in Arizona to include Bitcoin and other cryptocurrencies. If enacted, the bill would amend sections of the tax code to reflect the change, streamlining digital asset usage in financial transactions and tax reporting across the state.
Arizona Leads After Utah Bows Out
Arizona’s legislative progress follows Utah’s decision to remove a similar digital reserve clause from its bill earlier this month. Both the SB1025 and SB1373 are set to be reviewed by the House Rules Committee, which has a large Republican majority.
Considering the potential swing in favor, Arizona could well be on its way to becoming the first state with an active Bitcoin reserve strategy. If these bills pass the Rules Committee and the full House, they will go to the governor’s desk for final approval. Experts note that this would mark a historic shift in state-level crypto policy.
