Arizona lawmakers have cleared two major crypto-related bills that could position the state as a national pioneer in government cryptocurrency investment strategies. The measures now await final approval from Governor Katie Hobbs after successfully passing both chambers without amendments.
The first, Senate Bill 1025—formally known as the Arizona Strategic Bitcoin Reserve Act—focuses on enabling the state to invest directly in Bitcoin as part of its financial strategy. The bill passed the Arizona House on Monday with a 31-25-4 vote. A companion measure, Senate Bill 1373, was also approved the same day by a 37-19-4 margin. This second bill establishes a broader Digital Assets Strategic Reserve Fund, designed to manage a diversified portfolio of various digital assets beyond just Bitcoin.
Both bills represent a significant step toward integrating digital assets into state-level fiscal management. If enacted, they would create formal structures for Arizona to hold and manage cryptocurrencies, signaling a major shift in how state governments could approach blockchain-based assets as part of their reserve strategies.
In addition to these developments, Arizona lawmakers are exploring further initiatives aimed at cementing the state’s role as a crypto innovator. A separate proposal introduced in March seeks to allow Bitcoin exchange-traded funds (ETFs) into government employee retirement plans. Earlier this month, the state also advanced legislation to protect Bitcoin miners and blockchain node operators from discriminatory regulations.
Inside Arizona’s Strategic Bitcoin and Digital Assets Reserve Bills
Arizona’s newly passed crypto bills, SB1025 and SB1373, lay the groundwork for the state’s direct involvement in Bitcoin and broader digital asset management — a move that could significantly reshape how public funds are handled in the future.
Senate Bill 1025, titled the Arizona Strategic Bitcoin Reserve Act, outlines how the state may allocate and safeguard portions of its public funds. Specifically, the bill would authorize Arizona’s state treasurer and public retirement systems to invest up to 10% of their holdings in Bitcoin. Additionally, if the U.S. federal government establishes a Strategic Bitcoin Reserve at the national level, Arizona would be permitted to store its Bitcoin holdings in a “secure, segregated account” within that federal reserve structure.
This change would represent a historic shift in state-level fiscal policy, potentially aligning Arizona’s public financial management practices more closely with Bitcoin’s emerging role as a reserve asset.
Senate Bill 1373, meanwhile, creates the Digital Assets Strategic Reserve Fund. This fund would serve as a repository for both legislative appropriations and digital assets seized by the state, including those obtained through criminal proceedings. Unlike typical public funds, allocations to this digital asset reserve would not expire at the end of each fiscal year, allowing for long-term strategic management.
The fund’s scope is broader than Bitcoin alone, enabling custody of stablecoins, non-fungible tokens (NFTs), and other digital assets. Management responsibility would fall to the Arizona State Treasurer, who would be tasked with employing approved custody solutions to ensure security and compliance.
Together, the two bills offer a comprehensive vision for how Arizona could weave Bitcoin and other digital assets into its public finance system — while also preparing for a future where crypto plays a larger role in government reserves.
Political Uncertainty Looms Over Arizona’s Crypto Reserve Bills
If signed into law, Arizona’s newly passed crypto bills could make it the first U.S. state to fully integrate Bitcoin and digital assets into its official financial management systems. However, final approval remains uncertain amid political tensions.
Both Senate Bill 1025 and Senate Bill 1373 now sit on Governor Katie Hobbs’ desk awaiting signature. Yet, earlier this month, Hobbs issued a stark warning via X, declaring that she would veto any bills not already finalized at her desk. The threat was tied to frustrations over ongoing budget negotiations and what she called “extreme Republican legislators” allegedly holding up funding for programs supporting constituents with disabilities.
Although a budget compromise was reportedly reached last Friday, Hobbs has not publicly commented on the specific fate of the crypto bills. With no formal statement issued, the path forward for Arizona’s Strategic Bitcoin Reserve Act and Digital Assets Strategic Reserve Fund remains in limbo.
Quick Facts
- Arizona lawmakers approved Senate Bill 1025 and Senate Bill 1373 to authorize Bitcoin and digital asset reserves.
- SB1025 would allow up to 10% of state funds to be invested directly in Bitcoin.
- SB1373 would create a broader Digital Assets Strategic Reserve Fund for Bitcoin, stablecoins, and NFTs.
- The bills now await final approval from Governor Katie Hobbs.
