Arizona’s Strategic Digital Assets Reserve Bill (SB 1373) is a step forward in crypto legislation and is getting closer to becoming law. The House Committee of the Whole offered the bill a good report on April 17. It is now moving on to its third reading and a final vote on the floor. Even though there is a lot of support for the bill, its fate is still uncertain because it needs one more vote before it can reach Governor Katie Hobbs’ desk, where joint bills have recently been vetoed.
What is SB 1373?
SB 1373 suggests making a Digital Assets Strategic Reserve Fund out of digital assets taken away during illegal investigations. As the state treasurer of Arizona, you would oversee this fund and could spend up to 10% of it on digital assets every fiscal year. The fund’s treasurer could also lend its assets to make more money, if the loans don’t increase the fund’s financial danger.
Governor Hobbs’ Veto Threat Potential Roadblock
Even though SB 1373 has passed a big congressional test, Governor Katie Hobbs’ recent veto spree makes it unclear what will happen to the bill now. In just one week, Hobbs turned down 15 bills and clarified that she wouldn’t sign any more until the government agreed to provide money for disability services.
Expanding Arizona Crypto Goals
Arizona doesn’t just have SB 1373 when it comes to crypto laws. The House Committee of the Whole passed the Arizona Strategic Bitcoin Reserve Act (SB 1025), which allows up to 10% of state retirement and treasury funds to be in Bitcoin. The bill is now waiting for a full vote.
The state wants to be a national leader in Bitcoin reserve programs. It wants to be like Texas, Utah, and New Hampshire, which have similar bills that are getting support, even though many of them, like Utah’s, have been changed or thrown out at the last minute.
Conclusion
Arizona might be the first state to set up a legally backed digital asset reserve fund as SB 1373 approaches its final step. But since Governor Hobbs has his veto pen ready, the bill’s future is still unclear.Â
