Arizona’s Crypto Reserve Plan Moves Forward, May Face Governor’s Veto

Arizona is making big moves in the world of crypto. A new bill that could allow the state to build a crypto reserve has passed an important vote and is now just one step away from heading to Governor Katie Hobbs' desk. But even with strong support from lawmakers, the bill might not make it all the way.

What is the Arizona Crypto Reserve Bill (SB 1373)?

On April 17, Senate Bill 1373, which is also called the Strategic Digital Assets (crypto) Reserve Bill, was passed by the House Committee of the state. This committee includes all 60 members of the House. The draft now moves to its third and final reading before it gets a full vote. If passed, it will be sent to Governor Hobbs for approval.

The goal of SB 1373 is to create a Digital Assets Strategic Reserve Fund. This fund would be made up of digital currencies seized during criminal investigations. The treasurer of the state would manage the fund and could invest up to 10% of it each year into digital assets like cryptocurrencies. The treasurer would also be allowed to loan out assets from the fund to earn more returns, as long as it doesn't add financial risk.

Governor Hobbs’ Possible Veto

Even if the draft gets through the final House vote, it may not become law. Governor Katie Hobbs has recently taken a strong stance against passing new drafts. She has promised to veto every draft until the state legislature agrees on funding for disability services. Even the governor has vetoed fifteen drafts in just 7 days.

Hobbs has a history of vetoing both Republican and bipartisan laws, which makes the future of Senate draft 1373 uncertain.

Arizona’s Bitcoin-Only Bill:

Another law SB 1025 is also making progress, alongside SB 1373. This one focuses only on Bitcoin. If passed, it would allow Arizona’s treasury and the state’s retirement system to invest up to 10% of available funds in Bitcoin.

SB 1025 was approved by the same House committee on April 1 and is also waiting for a final vote.

Other States Join the Race

Other than Arizona there are other states making efforts to hold crypto and BTC in reserve. Texas, Utah, and New Hampshire are working on similar laws. On March 6 Texas passed a Bitcoin reserve law. New Hampshire’s House recently approved a similar drafts too. Utah passed a draft on March 7, but they removed the part about creating a Bitcoin reserve during the final vote.

Even though Arizona has made the most progress, experts say the Texas law may have the best chance of becoming law because it’s had fewer political issues.

Final Thoughts

Arizona is leading the charge in the crypto funds race among U.S. states. But the final outcome depends heavily on the Governor, who may stop the bill despite strong support. If either SB 1373 or SB 1025 becomes law, Arizona could be one of the first states to officially invest in crypto, setting a bold example for others to follow.