Arizona’s House is approaching a vote on two legislative proposals: one to establish reserves for digital assets obtained from criminal proceedings and another to fund a Bitcoin reserve using state treasury and retirement funds.
If lawmakers approve the legislation, Arizona will create strategic reserves for digital assets by combining forfeited assets from criminal cases with state-funded investments.
Arizona Republicans hold a 33-27 majority in the House, which improves the odds of the bills successfully passing.
The ultimate test, based on Bitcoin Laws, will be whether Democratic Governor Katie Hobbs signs the bills.
Hobbs vetoed 22% of bills in 2024, making her the U.S. governor with the highest veto rate that year.
Recently, Arizona’s House Rules Committee approved the Strategic Digital Assets Reserve Bill (SB 1373) along with the Arizona Strategic Bitcoin Reserve Act (SB 1025).
The Strategic Digital Assets Reserve Bill (SB 1373) seeks to create a digital asset reserve by sourcing funds from confiscated assets in criminal cases and placing its management under the state treasurer’s authority.
The bill restricts the treasurer from investing more than 10% of the fund’s total value each year.
As long as the investments do not increase financial risks, the treasurer can leverage the fund’s assets through lending to maximize returns.
The Arizona Strategic Bitcoin Reserve Act (SB 1025) focuses entirely on Bitcoin.
The proposal aims to authorize Arizona’s Treasury and retirement system to allocate up to 10% of their available funds for Bitcoin investments.
Additionally, the legislation allows the state to store its Bitcoin holdings in a distinct account inside a federal Bitcoin reserve if the federal government creates one.
Arizona is leading the push for a state-managed digital asset reserve, but other states are not far behind.
The Texas Senate passed the Strategic Bitcoin Reserve Bill (SB-21) by a 25-5 majority on March 6.
To officially enact the bill, Texas lawmakers must secure approval from the House and the governor’s signature.
After the vote, Democrat Ron Reynolds introduced a bill to set a $250 million limit on the reserve, which previously had no cap.
Although Utah enacted new Bitcoin legislation, last-minute revisions removed all references to a strategic reserve.
Oklahoma’s House approved HB1203, also known as the Bitcoin Reserve Bill, by a 77-15 vote on March 25, advancing the bill to the state Senate.
