Key Takeaways
- Arizona's SB 1373 bill passed a House committee and proposes a state-run digital asset reserve.
- The fund would include seized bitcoin and other blockchain assets, with limited annual investment.
- Governor Hobbs may veto the bill due to an unrelated disability funding standoff.
Arizona is moving forward with legislation to create a state-managed digital assets reserve.
SB 1373, known as the Strategic Digital Assets Reserve Bill, cleared a key hurdle on Thursday when it passed the state House committee.
It now proceeds to a third reading and full floor vote before potentially landing on the governor’s desk.
Bill provisions
The bill proposes establishing a strategic reserve fund comprising both state-appropriated funds and bitcoin or other digital assets seized by authorities.
According to the text, the Arizona state treasurer would be permitted to deposit seized assets into the fund using a qualified custody solution or a state-registered exchange-traded product.
The treasurer would also have the authority to loan digital assets for additional returns, but may not invest more than 10% of the fund’s total in a single fiscal year.
Asset definitions
The legislation defines “digital assets” broadly, including bitcoin, stablecoins, NFTs, and other blockchain-based tokens with economic or access rights.
Related legislation
A separate measure, the Arizona Strategic Bitcoin Reserve Act (SB 1025), passed the House on April 1.
It would authorize the state to invest up to 10% of its funds in bitcoin.
Political challenges
Despite this progress, both bills may be stalled due to Governor Katie Hobbs’ pledge to veto all legislation until lawmakers pass a disability funding bill.
National context
Arizona leads the country in advancing digital asset reserve legislation, with Texas and New Hampshire trailing behind, according to researcher Bitcoin Laws.
