Arizona is making headlines in the world of cryptocurrency as it leads the push to establish a Bitcoin reserve. Two bills, SB 1373 and SB 1025, have cleared the House Rules Committee, paving the way for Arizona to become the first state to create a strategic digital asset reserve.
The Strategic Digital Assets Reserve Bill, SB 1373, would allow the state treasurer to manage a fund composed of confiscated digital assets. This fund could see up to 10% of its value invested each year, with the option to loan assets as long as it does not increase risk. On the other hand, SB 1025, the Arizona Strategic Bitcoin Reserve Act, specifically targets Bitcoin. It would permit the state treasury and retirement system to invest up to 10% of available funds into Bitcoin, with a provision to store the cryptocurrency in a secure, segregated federal reserve account.
Following a successful voting session on March 24, the bills have now moved to the full House for a vote. If they pass this stage, they will then require approval from Democratic Governor Katie Hobbs. However, Hobbs is known for vetoing Republican-led legislation, having rejected 22% of bills in 2024, the highest rate of any U.S. governor.
According to Bitcoin Laws, Arizona is currently leading the race to establish a state-backed Bitcoin reserve, closely followed by Oklahoma and Texas. In Texas, the Senate recently approved its Strategic Bitcoin Reserve Bill, SB-21, and the bill is now under consideration in the state House. However, Democrat Representative Ron Reynolds has introduced a proposal to cap the reserve size at $250 million to limit the scale of the state’s Bitcoin holdings.
In Oklahoma, the House passed its Bitcoin Reserve Bill (HB1203) with strong support in a 77-15 vote on March 25. The bill will now move to the state Senate for further consideration. The progress of these bills highlights the growing interest and debate surrounding the establishment of Bitcoin reserves at the state level.
As the cryptocurrency landscape continues to evolve, Arizona’s bold move to establish a Bitcoin reserve could set a precedent for other states to follow suit. With the potential to shape the future of digital asset management and investment, the outcome of these bills will be closely watched by industry experts and enthusiasts alike.