Arizona advances Strategic Digital Asset Reserve Bill
Arizona’s State Bill 1373, known as the Strategic Digital Asset Reserve Bill, is moving forward. On April 17,it cleared the Committee of the Whole and is now set for a final house vote.
SB 1373 aims to create a fund from digital assets seized in criminal cases. The state treasurer would manage this fund and can invest up to 10% of its value in digital assets each year. The bill also allows the treasurer to lend out fund holdings, as long as it doesn’t increase financial risk.
Arizona is among the frontrunners in establishing a state-backed digital asset reserve, alongside Texas and New Hampshire. SB 1373 passed the House Rules Committee on March 25, along with SB 1025, which focuses solely on Bitcoin.
SB 1025 permits the state’s treasury and retirement system to allocate up to 10% of funds into Bitcoin. It also includes provisions for storing Bitcoin in a segregated federal reserve account. This bill passed the Committee of the Whole on April 1 and awaits a final vote.
However, both bills face a potential veto from Governor Katie Hobbs. She has threatened to veto all legislation until lawmakers address a $122 million funding shortfall for the state’s Division of Developmental Disabilities.
Arizona’s crypto strategy also includes House Bill 2387, aimed at curbing Bitcoin ATM fraud. This bill proposes measures like daily transaction caps and mandatory operator licensing to protect users.
