Arizona is almost ready to make history with two groundbreaking crypto bills that could create the first-ever digital asset reserves in the state. We now have an entire floor vote on the Strategic Digital Assets Reserve Bill (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025). Both bills passed the House Rules Committee. If they pass, these bills will allow Arizona to handle digital assets taken away during criminal cases and put public money into Bitcoin. However, Democratic Governor Katie Hobbs, who has vetoed a record 22% of bills in 2024, could be the biggest problem, even though Republicans rule the House of Representatives.
Understanding Arizona’s Two Crypto Bills
The Strategic Digital Assets Reserve Bill (SB 1373) wants to set up a state-run fund for digital assets taken away during crime investigations. The state treasurer would oversee the fund, and they could contribute no more than 10% of its value each year. The bill also lets the government loan assets to make more money, if doing so doesn’t raise financial risks.
The Arizona Strategic Bitcoin Reserve Act (SB 1025), on the other hand, is all about investing in Bitcoin. The state’s retirement system and treasury should be able to give up to 10 percent of their cash to Bitcoin.
Political Scene and Future
Currently, Republicans control the Arizona House of Representatives from 33 to 27. This means that the bills have a good chance of passing. However Governor Katie Hobbs is known for having a high veto rate, which could make it hard for the bills to become law.
Other states are rushing crypto reserves.
Arizona isn’t the only state that wants to back Bitcoin reserves with the government. Arizona, Utah, and Oklahoma have also proposed or passed similar bills. The Senate of Texas passed SB-21, a Bitcoin reserve bill, and the House of Oklahoma passed HB1203 with a strong 77-15 vote.
Conclusion
Arizona’s move to create crypto funds backed by the state could be a big step forward in how governments use digital assets. The Democratic-controlled House is expected to pass both bills, but Governor Katie Hobbs’s veto power is still the last obstacle.
