Lucía Peña
Arizona is making bold moves in the digital asset space. On Thursday, the state’s House committee approved the Strategic Digital Assets Reserve Bill (SB 1373) — legislation aimed at creating a government-managed crypto reserve fund. The bill will now undergo a third reading before it can proceed to a full House vote and ultimately the governor’s desk.
If passed, SB 1373 would authorize the formation of a state-controlled reserve consisting of both allocated public funds and seized digital assets such as cryptocurrencies.
How Arizona Plans to Manage Its Crypto Reserves
The proposed legislation grants the Arizona State Treasurer the authority to store confiscated crypto assets using regulated custody solutions or state-registered exchange-traded products. The treasurer may also lend out digital assets from the fund to generate additional income.
The bill introduces a fiscal safeguard, stating that:
“No more than 10% of the total funds in the reserve may be invested within a single fiscal year.”
What Qualifies as a Digital Asset?
Under SB 1373, digital assets include a broad range of blockchain-based technologies, such as:
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BTC and other cryptocurrencies
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Stablecoins
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Non-fungible tokens (NFTs)
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Virtual coins and currencies
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Blockchain-based assets with monetary or access rights
SB 1025: Arizona’s Bitcoin Reserve Act Moves in Parallel
SB 1373 isn’t Arizona’s only crypto-forward legislation. A companion bill, known as the Arizona Strategic Bitcoin Reserve Act (SB 1025), also passed the House on April 1. If implemented, SB 1025 would allow state funds to invest up to 10% directly into Bitcoin and other virtual currencies.
Despite legislative momentum, both bills may hit a roadblock. Governor Katie Hobbs has vowed to veto all pending legislation until lawmakers pass a disability funding measure—an issue currently holding up several bills, including those related to crypto.
Arizona Leads the Way in U.S. State-Level Crypto Policy
According to Bitcoin Laws, a crypto-focused policy tracker, Arizona is leading U.S. states in pushing crypto reserve legislation, followed by Texas and New Hampshire. This trend reflects growing interest among state governments to diversify reserves and embrace blockchain-based financial strategies.
