Arizona's Strategic Digital Assets Reserve Bill, known as SB 1373, has successfully passed the House Committee of the Whole and is now poised for a final vote before potentially reaching the governor's desk for official approval. This significant piece of legislation aims to establish a Digital Assets Strategic Reserve Fund, which would be composed of digital assets seized through criminal proceedings and managed by the state's treasurer.
The framework of this bill permits the state treasurer to invest up to 10% of the fund's total assets in digital currencies each fiscal year. Moreover, the treasurer is authorized to loan the fund's assets to enhance returns, as long as such actions do not increase financial risks. Despite the promising progress of SB 1373, its future remains uncertain due to potential opposition from Arizona Governor Katie Hobbs.
Governor Hobbs has made a commitment to veto all bills until the legislature passes a bill addressing disability funding. Her history of vetoing legislation is quite notable, with 15 bills rejected just this week. Concurrently with SB 1373, Arizona's legislature is also considering another significant bill known as the Arizona Strategic Bitcoin Reserve Act, or SB 1025.
This particular bill focuses solely on Bitcoin and proposes allowing the state's treasury and retirement system to invest up to 10% of available funds in Bitcoin. Similar to SB 1373, SB 1025 has also passed the House Committee of the Whole and is now awaiting a full floor vote. The movement to establish state-level Bitcoin reserves is gaining notable momentum across various regions of the United States.
While Arizona is advancing its own initiatives, it is crucial to recognize that other states are also making significant strides in this arena. For instance, Utah recently passed Bitcoin legislation but ultimately chose to remove the pivotal provision for a Bitcoin reserve during the final reading. Meanwhile, the Texas Senate has approved a Bitcoin reserve bill, and a similar proposal has progressed through New Hampshire's House.
These recent developments underscore a growing interest among states to embed digital assets into their financial strategies, even in the face of varying levels of legislative support and potential executive challenges..