Arizona’s Crypto Reserve Bill Passed by House Committee

Arizona’s Strategic Digital Assets Reserve Bill (SB 1373) has advanced past the House Committee of the Whole and is awaiting a final vote before potentially reaching the governor for approval.

The bill seeks to establish a Digital Assets Strategic Reserve Fund, comprising digital assets seized from criminal cases, managed by the state’s treasurer.

The treasurer would be allowed to invest up to 10% of the fund in digital currencies annually and could also loan fund assets to boost returns, provided financial risks are not increased.

However, SB 1373 faces uncertainty due to possible opposition from Governor Katie Hobbs, who has pledged to veto all bills until legislation addressing disability funding is passed.

Governor Hobbs has recently vetoed 15 bills. Alongside SB 1373, the legislature is considering the Arizona Strategic Bitcoin Reserve Act (SB 1025), which focuses on Bitcoin and proposes allowing investments of up to 10% of available funds in Bitcoin. SB 1025 has also cleared the House Committee of the Whole and is awaiting a full floor vote.