Catenaa, Wednesday, April 23, 2025- Arizona has taken a major step toward becoming the first U.S. state to establish a digital asset reserve fund, as Senate Bill 1373 cleared a House committee on Thursday and now heads to a full floor vote.
The proposed legislation, dubbed the Arizona Strategic Digital Assets Reserve Bill, aims to create a fund composed of legislatively appropriated monies and cryptocurrency seized by state authorities. If approved, the fund would allow the state treasurer to manage these assets via qualified custody or exchange-traded products registered in Arizona.
Under the bill, the treasurer may also loan out digital assets to generate additional returns. However, the legislation caps the fund’s annual investments at 10% of total deposits.
The bill defines “digital assets” broadly, encompassing cryptocurrencies, stablecoins, NFTs, and other blockchain-based instruments with economic or access rights.
SB 1373 is one of two digital asset bills currently progressing through Arizona’s legislature. The other, SB 1025 — the Strategic Bitcoin Reserve Act — would permit state funds to invest up to 10% directly into virtual currencies and passed the House earlier this month.
Despite legislative momentum, the bills face potential delays. Gov. Katie Hobbs has pledged to veto all legislation until lawmakers agree on a disability funding package, casting uncertainty over the bills’ future.
Arizona leads other U.S. states — including Texas and New Hampshire — in advancing digital reserve legislation, according to data from researcher Bitcoin Laws.
