Arizona Crypto Reserve Bill Passes House Committee, Heads to Third Reading

Arizona Crypto Reserve Bill Passes House Committee, Heads to Third Reading

Arizona's push to become a leader in crypto-backed public finance is gaining traction as its Strategic Digital Assets Reserve Bill (SB 1373) passed the House Committee of the Whole on April 17. With just one more vote required in a full House floor reading, the bill is on the brink of being sent to Governor Katie Hobbs’ desk for final approval.

The legislation seeks to establish a Digital Assets Strategic Reserve Fund, composed of digital assets seized during criminal investigations. The fund would be overseen by Arizona’s state treasurer, who would be authorized to invest up to 10% of the fund’s total value annually in digital assets. Additionally, the bill allows for the assets to be loaned out to boost returns, as long as the process does not introduce excessive financial risk.

Source: Bitcoin Laws

Veto Threat Looms

Despite its progress, the bill faces a significant hurdle: Governor Katie Hobbs. She recently announced plans to veto all legislation until the state legislature passes a bill related to disability funding. Hobbs also has a history of frequent vetoes, having already rejected 15 bills this week alone, raising concerns that SB 1373 could meet a similar fate.

Still, supporters remain optimistic. Julian Fahrer, founder of Bitcoin Laws and CEO of Apollo, told Cointelegraph he expects SB 1373 to pass the House and possibly be combined with SB 1062, another crypto-related bill aiming to redefine legal tender to include cryptocurrencies like Bitcoin.

Arizona Takes the Lead in State Crypto Reserve Efforts

SB 1373 is part of a broader crypto-forward agenda in Arizona. It is advancing alongside SB 1025 — the Arizona Strategic Bitcoin Reserve Act, which focuses solely on Bitcoin. SB 1025 proposes that Arizona’s treasury and state retirement systems be allowed to allocate up to 10% of available funds into Bitcoin. Like SB 1373, it passed the House Committee of the Whole and is awaiting a final vote.

Race to establish a Bitcoin reserve at the state level. Source: Bitcoin Laws

Arizona’s progress stands out among a growing number of U.S. states exploring Bitcoin reserves. While Texas, Utah, and New Hampshire have introduced or passed similar measures, many have faced legislative setbacks. For instance, Utah passed Bitcoin legislation in March but removed the key provision establishing a state Bitcoin reserve in the final reading.

Fahrer believes Texas still has the clearest path forward, citing fewer legislative obstacles. However, Arizona remains the most advanced in terms of legislative momentum — provided Governor Hobbs doesn’t derail the effort.

What’s Next?

With public and political interest in digital assets continuing to grow, Arizona’s crypto reserve legislation could set a precedent for other states. If passed, SB 1373 would make Arizona one of the first U.S. states to formally integrate digital assets into public financial management.

All eyes are now on the final House vote — and Governor Hobbs’ pen.