Arizona Advances Digital Asset Reserve Bills Amid Political Challenges

According to Cointelegraph, two significant digital asset reserve bills in Arizona have successfully passed the House Rules Committee and are now set for a full vote on the House floor. These bills, if enacted, would enable Arizona to create strategic digital asset reserves using assets seized from criminal activities and newly invested public funds. With Republicans holding a 33-27 majority in the Arizona House of Representatives, the bills have a favorable chance of passing. However, the final challenge may come from the state's Democratic governor, Katie Hobbs, who has a history of vetoing legislation, having blocked 22% of bills in 2024, the highest rate among state governors. The two bills in question are the Strategic Digital Assets Reserve Bill (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025). SB 1373 aims to establish a reserve of digital assets seized through criminal proceedings, managed by the state treasurer. The treasurer would be restricted to investing no more than 10% of the fund's total value each fiscal year, with the option to loan assets to enhance returns without increasing financial risks. SB 1025 focuses on Bitcoin, proposing that Arizona's Treasury and state retirement system invest up to 10% of available funds into Bitcoin. It also suggests storing the state's Bitcoin reserve in a secure, segregated account within a federal Bitcoin reserve, should one be established. Arizona is at the forefront of establishing a state-based digital asset reserve, with other states closely following. On March 6, the Texas Senate passed its Strategic Bitcoin Reserve Bill (SB-21) with a 25-5 vote. This bill still requires approval from the House and the governor's signature to become law. Following this, Democrat Representative Ron Reynolds introduced a new bill to cap the previously uncapped reserve at $250 million. Utah also passed Bitcoin legislation, but references to a strategic reserve were removed at the last moment. Meanwhile, the Oklahoma House passed its Bitcoin Reserve Bill HB1203 with a 77-15 vote on March 25, which will now proceed to the state Senate.