Arizona is making significant strides in establishing strategic Bitcoin reserves among U.S. states, amidst growing competition in digital asset initiatives.
Advancing Reserve Bills
On March 24th, Arizona's House Rules Committee passed two digital asset reserve bills, set for a full House vote. If enacted, these bills would allow Arizona to establish a reserve backed by assets confiscated in criminal cases and newly allocated public funds.
Details of SB 1373 and SB 1025
Bill SB 1373 proposes a state-managed digital assets reserve funded by confiscated criminal assets, authorizing the state treasurer to invest up to 10% annually. Bill SB 1025 focuses on Bitcoin, suggesting the state treasury and retirement system allocate up to 10% of their available funds to cryptocurrency, with provisions for securely storing Arizona’s Bitcoin reserves in a federally regulated account.
Other States and Federal Response
As Arizona leads in establishing a state-backed digital asset reserve, other states like Texas and Oklahoma are also progressing in this domain. However, states like Montana, Wyoming, North Dakota, and Pennsylvania have firmly rejected similar proposals. At the federal level, skepticism remains, with Polymarket data indicating only a 28% chance of Trump establishing a Bitcoin reserve within his first 100 days. Globally, regulatory trends are tightening in countries like Russia, Japan, Switzerland, and South Korea, contrasting with U.S. state initiatives.
The crypto space continues to evolve rapidly, and 2025 could bring either explosive growth or a significant downturn.
