Key Takeaways
- Arizona passed five bitcoin-related bills through the legislature.
- Two bills allow up to 10% of state funds to be invested in bitcoin.
- Bitcoin ATM bill sets $2,000 cash limit and stricter fee disclosures.
The Arizona Legislature advanced five bitcoin-related bills this week, including two that would establish state-held bitcoin reserves and another that defines bitcoin as legal tender under Arizona law.
Arizona Strategic Bitcoin Reserve Act
Senate Bill 1025, dubbed the “Arizona Strategic Bitcoin Reserve Act,” allows up to 10% of government or public funds to be invested in bitcoin and other digital assets.
It passed earlier this session on a 5–2 vote.
A separate measure, S.B. 1373, includes additional risk limits such as restricting digital asset investments to no more than 10% in a single year.
Cryptocurrency payment authorization
S.B. 1128, the Cryptocurrency Payment Authorization bill, would allow state agencies to accept bitcoin for taxes, fines, and fees.
Meanwhile, S.B. 1062 aims to redefine legal tender in Arizona to include cryptocurrency.
The bill exempts state income tax on gains from exchanging one form of legal tender for another, effectively removing state-level tax on bitcoin sales.
Bitcoin ATM regulation
The fifth bill, H.B. 2387, targets bitcoin ATMs.
The proposed law sets a daily $2,000 cash input cap per person and requires operators to clearly disclose fees—some reaching up to 20%.
Initially proposing a $1,000 cap, lawmakers raised the limit while maintaining a focus on fraud prevention, especially for elderly residents.
Legislative status
All five bills have cleared their respective committee and floor votes and are now awaiting final legislative action or the governor’s signature.
