Arizona is moving closer to becoming one of the first U.S. states to formally establish strategic digital asset reserves, including a dedicated Bitcoin reserve. Two proposed bills advanced by the Arizona House Rules Committee are now set for a full floor vote.
Digital Asset and Bitcoin Reserve Bills Advance
The two bills — the Strategic Digital Assets Reserve Bill (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025) — cleared the committee on March 24 and could soon become law if passed by the House and signed by the governor.
If enacted, these bills would allow Arizona to create reserves made up of:
- Seized digital assets from criminal cases
- Public funds allocated from the state treasury and retirement system, particularly in Bitcoin
With Republicans holding a 33–27 majority in Arizona’s House of Representatives, the bills have a solid chance of advancing.
What Each Bill Proposes
SB 1373: Strategic Digital Assets Reserve Bill
- Creates a digital asset reserve using crypto seized in criminal proceedings
- Managed by the state treasurer
- Limits new investments to 10% of the fund’s total value per fiscal year
- Permits asset lending to generate additional returns, provided it doesn’t increase risk
SB 1025: Arizona Strategic Bitcoin Reserve Act
- Allows the state treasury and retirement system to invest up to 10% of available funds in Bitcoin
- Calls for a secure, segregated storage account, potentially within a future federal Bitcoin reserve
Together, the bills signal Arizona’s growing commitment to integrating blockchain and digital asset management into public finance.
Political Hurdles Remain
Despite legislative momentum, the final approval may face resistance from Arizona’s Democratic Governor Katie Hobbs. According to Bitcoin Laws, Hobbs has vetoed 22% of bills presented in 2024 — the highest rate among U.S. governors this year.
Other States Are Moving Too
Arizona isn’t alone in exploring state-level Bitcoin reserves:
- Texas: The Senate passed SB-21 on March 6 by a 25-5 vote. A companion bill is now being debated in the House, with a proposal from Democrat Rep. Ron Reynolds to cap the reserve at $250 million.
- Oklahoma: On March 25, the House passed its Bitcoin Reserve Bill (HB1203) by a 77-15 margin. It now moves to the Senate.
- Utah: Recently passed Bitcoin legislation but removed all mentions of strategic reserves at the last minute.
If Arizona’s bills pass and are signed into law, the state could set a new precedent for government-managed digital asset reserves.
