Arizona Moves to Build Crypto War Chest—Full Vote Next!

Arizona is moving closer to establishing a digital asset reserve as two bills advance to a full vote in the House of Representatives. If passed, these measures would allow the state to manage cryptocurrency reserves, including Bitcoin, using both confiscated assets and public funds.

Arizona House Prepares for Full Vote on Crypto Bills

Two proposed bills aimed at creating a digital asset reserve in Arizona have cleared the House Rules Committee and are now set for a full House vote. The Strategic Digital Assets Reserve Bill (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025) outline plans to establish a state-managed cryptocurrency fund.

With a 33-27 Republican majority in the Arizona House, both crypto-related bills have a solid path to approval. However, their final outcome depends on Democratic Governor Katie Hobbs, who has vetoed 22% of bills this year—the highest percentage among U.S. governors.

🇺🇸 State Reserve Race Update:

Arizona's House Rules Committee passed both Bitcoin Reserve Bills (SB1373 and SB1025), ruling them "constitutional and in proper form."

The bills have now passed their assigned committees, meaning they should be headed for a full floor vote. pic.twitter.com/suuxXCifP3

— Bitcoin Laws (@Bitcoin_Laws) March 24, 2025

On March 25, Bitcoin Laws commented on the situation, pointing out that despite legislative support, the bills could still face obstacles. “Governor Hobbs has frequently blocked Republican-led measures, and there’s a chance these bills could meet the same fate,” the post noted.

Details of the Two Crypto Reserve Bills

SB 1373 proposes the creation of a strategic digital assets reserve made up of cryptocurrency seized through criminal proceedings. The state treasurer would oversee this fund, with the ability to invest up to 10% of its value per fiscal year. Additionally, the bill permits loaning digital assets as long as it does not increase financial risks.

SB 1025 targets Bitcoin and would permit the state treasury and retirement system to store as much as 10 percent of its available funds in Bitcoin. Additionally, if a federal Bitcoin reserve is created, the bill authorizes Arizona to keep that reserve in a secure segregated account.

Other States Compete to Establish Bitcoin Reserves

Arizona is among several states working toward a strategic Bitcoin reserve. Texas recently passed its own Strategic Bitcoin Reserve Bill (SB-21) in the Senate with a 25-5 vote, but it still requires approval from the House and governor. Meanwhile, a new proposal from Texas Representative Ron Reynolds seeks to limit the reserve’s size to $250 million.

Oklahoma has also moved forward with similar legislation. On March 25, its House passed the Bitcoin Reserve Bill (HB1203) with a 77-15 vote, sending it to the Senate for further consideration. Utah had initially introduced Bitcoin legislation but later removed references to a strategic reserve.

Arizona Positioned to Lead in State-Backed Crypto Reserves

If Arizona lawmakers approve both bills in the upcoming full vote, the state could become the first in the U.S. to establish a government-backed digital asset reserve. The decision now rests with the House and, ultimately, Governor Hobbs.

As the race to build crypto reserves intensifies, Arizona’s approach could set a precedent for other states considering similar measures.