Arizona has taken a significant step towards establishing a strategic digital asset reserve by clearing two bills in the Rules Committee.
Arizona's Legislative Changes
On March 24, bills SB 1373 and SB 1025 were approved by the Arizona House Rules Committee and are now set for a full House vote. These initiatives aim to create digital asset reserves and differ in focus and funding sources.
Details of SB 1373 and SB 1025
SB 1373 allows Arizona’s treasurer to manage a fund composed of confiscated digital assets, with an annual investment cap of 10%. SB 1025 focuses on Bitcoin, permitting the investment of up to 10% of available funds into Bitcoin, stored securely in a segregated federal reserve account.
Future Steps and Prospects
If the bills pass the full vote, they will be sent to Democratic Governor Katie Hobbs, whose approval is the final hurdle. Governor Hobbs is known for frequently vetoing Republican-led legislation. Arizona currently leads the race for a state-backed Bitcoin reserve, ahead of Oklahoma and Texas.
Arizona has moved closer to becoming the first state with an official Bitcoin reserve. The decision now lies with Governor Katie Hobbs, known for her high veto rate on Republican initiatives.
