Bill SB 1373, known as the Strategic Digital Asset Reserve Bill, is making progress in Arizona, opening up possibilities for using cryptocurrency within state finances.
Overview of Bill SB 1373
On April 17, bill SB 1373 passed a preliminary review by the full House in Arizona. This bill proposes the creation of a fund from digital assets seized in criminal proceedings. The state treasurer would manage the fund and could invest up to 10% of its total value in digital assets each fiscal year.
Comparison with SB 1025
While SB 1373 covers digital assets broadly, SB 1025 focuses solely on Bitcoin and allows Arizona's treasury to allocate up to 10% of available funds into BTC. This bill also includes a provision for storing Bitcoin in a segregated federal reserve account.
Potential Obstacles to Passage
However, both bills may face challenges at the governor’s office. Arizona Governor Katie Hobbs has threatened to veto all legislation until lawmakers pass a bill to address a funding shortfall for disability services. Hobbs has already vetoed 15 bills this week, holding the highest rejection rate among U.S. governors in 2024.
The legislative developments in Arizona regarding digital assets could shape the future of cryptocurrency use in state finance, but the potential for new initiatives may face a series of challenges.
