Arizona crypto reserve bill passes House committee, heads to third reading

Arizona's Strategic Digital Assets Reserve Bill (SB 1373) has passed the House Committee of the Whole and now awaits a final floor vote before reaching Governor Katie Hobbs' desk.

The bill proposes a Digital Assets Strategic Reserve Fund to hold seized crypto assets, managed by the state treasurer, who could invest up to 10% of the fund annually in digital assets to generate returns without increasing financial risk.

SB 1025 (Arizona Strategic Bitcoin Reserve Act) would allow the state treasury and retirement system to allocate up to 10% of available funds to Bitcoin specifically. It passed the same committee earlier in April.

Governor Hobbs has threatened to veto all bills until lawmakers pass disability funding legislation, having already rejected 15 bills this week.

Arizona leads U.S. state-level crypto reserve efforts, with Texas, New Hampshire, and Kentucky advancing similar measures.

Final approval hinges on the House floor vote and Hobbs' stance, with analysts suggesting SB 1373 might merge with other crypto-related bills like SB 1062 (legal tender expansion).

Allocating up to 10% of public funds to digital assets like Bitcoin provides access to an emerging asset class with potential for outsized returns, despite its volatility.

A pro-crypto stance positions Arizona as a hub for blockchain startups and talent, fostering job creation and ancillary business growth.

Early adoption of crypto reserves could attract institutional investment and federal funding if national frameworks emerge.

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