Arizona’s Crypto Reserve Bills Advance, Could Set Stage for Nationwide Adoption

Two significant Bitcoin reserve bills have cleared a major hurdle in Arizona's Senate, positioning the state as a leader in the growing movement for crypto investment legislation. On February 27, the Arizona Senate passed the Strategic Digital Assets Reserve bill (SB 1373) and the Strategic Bitcoin Reserve Act (SB 1025), both of which now advance to the House of Representatives for further consideration.

SB 1373: Creating a State Crypto Reserve Fund

The Strategic Digital Assets Reserve bill (SB 1373), sponsored by Republican Senator Mark Finchem, passed its third reading with a vote of 17 in favor and 12 against. If it becomes law, the bill would establish a "Digital Assets Strategic Reserve Fund," managed by the state treasurer. This fund would consist of appropriated funds from the legislature as well as digital assets seized by the state.

Under the bill’s provisions, the treasurer would be allowed to invest up to 10% of the fund's total deposits each fiscal year. Additionally, the state could loan digital assets from the fund to generate returns, as long as such loans do not increase financial risks to the state.

Finchem’s bill is seen as a step toward a broader trend of states exploring the use of digital assets for public investment. Dennis Porter, founder of the Satoshi Action Fund, weighed in on the bill's passage, saying, “Whether you like it or not, legislation will happen at the federal level in this order: Stablecoins, Market Structure, and Strategic Bitcoin Reserve,” in a Feb. 28 post on X (formerly Twitter).

SB 1025: Expanding Investment Authority for Public Funds

Alongside SB 1373, SB 1025, the Strategic Bitcoin Reserve Act, also passed its third reading in the Arizona Senate with a vote of 17 in favor and 11 against. Sponsored by Republican Senator Wendy Rogers and Representative Jeff Weninger, this bill focuses on granting public funds the authority to invest in crypto assets, specifically Bitcoin.

Unlike SB 1373, which establishes a fund for seized and appropriated digital assets, SB 1025 provides broader investment authority for public entities to include Bitcoin and other digital assets in their portfolios. This bill is another step toward integrating crypto into the state’s fiscal strategy.

Crypto Reserve Legislation Gains Momentum

The passage of these two bills moves Arizona ahead in the race among US states to adopt crypto reserve laws. Arizona now joins Utah as one of the two states nearing completion of the approval process for crypto reserve bills.

Currently, 18 states have crypto reserve bills awaiting Senate votes, while other states such as Montana, Wyoming, North Dakota, South Dakota, and Pennsylvania have rejected similar proposals. The growing support for Bitcoin reserve initiatives can be partly attributed to President Donald Trump’s pro-crypto stance, which has fueled optimism around digital assets at both the state and federal levels.

Bitcoin's Market Struggles Amid Economic Uncertainty

While Bitcoin’s role as a state investment is gaining ground, the cryptocurrency market itself has been facing significant challenges. Bitcoin has seen a sharp 17% decline over the past week, as it grapples with ongoing economic uncertainty. Much of the market’s recent struggles are attributed to the uncertainty surrounding President Trump’s proposed tariffs, which have created volatility in the broader economy, further impacting crypto prices.

Despite these market conditions, Arizona's crypto reserve bills reflect a growing acceptance of digital assets in state investment strategies. With the state’s legislative process moving forward, Arizona could soon be at the forefront of a broader national shift toward embracing crypto as a valuable asset for public reserves.

As these bills make their way through the House, Arizona is positioning itself as a key player in the future of cryptocurrency regulation and investment in the United States.