The Crypto Reserve Bill from Arizona stands near complete approval after the House of Representatives passed it, demonstrating substantial progress for cryptocurrency adoption at the state level. A new Digital Assets Strategic Reserve Fund would be established by SB 1373 through the collection of digital assets obtained in criminal investigations as per crypto sources. After approval by the House Committee of the Whole on April 17 the bill requires a final vote to become law before Governor Katie Hobbs receives it.
The crypto reserve bill maintains a place in a rapidly expanding series of digital assets regulations that U.S. states enact to advance their adoption of blockchain technologies, as well as Bitcoin Reserves.
The Key Elements Found within Arizona’s Crypto Reserve Bill
State Treasurer will administer a Digital Assets Strategic Reserve Fund through the legislation known as the Arizona Crypto Reserve Bill (SB 1373). The proposed fund allows its managers to direct a maximum of ten percent of yearly investment toward digital assets.
Under the proposed framework, the Arizona Treasurer receives authorization to loan assets but only when such activities do not raise financial vulnerability levels. This legislation has gained approval from legislators because they see it as a contemporary asset diversification method for state funds.
The Arizona State Legislature shows the bill has passed the House Committee of the Whole following a small revision and remains pending for a third-floor reading
The bill includes controls that ensure proper oversight and responsibility systems. Governor Katie Hobbs has declared that she would utilize her veto power against every bill until proper funding is provided for disability service programs. The Arizona Republic reported Hobbs vetoed 15 bills during this week.
Parallel Push: Bitcoin Reserve Bill Also Advances
The Arizona Strategic Bitcoin Reserve Act (SB 1025) continues to move forward at different stages from SB 1373. The bill obtained passage from the House Committee of the Whole on April 1 and permits Arizona’s treasury and retirement fund to put Bitcoin as their sole investment option with a maximum allocation of 10% of total assets.
The approval process of these bills depends on political settlements that need completion. Lack of approval from Hobbs threatens to block the implementation of legislation that already secured political support.
According to Ryan Taylor former CEO of Dash Core Group “Arizona stands as a front-runner among U.S. states in crypto innovation through legislative initiatives.”
Political standoffs between parties seem likely to delay the time needed for both measures to be approved.
Arizona in National Context: Leading the Crypto Reserve Trend
The State of Arizona Establishes Itself As A Trailblazer Through Its Crypto Reserve Initiatives Against National Background. The Bitcoin Reserve project in Arizona gives the state a strategic position in the developing national trend. The state legislature of Utah sanctioned a digital asset bill during March, yet removed the Bitcoin Reserve provisions in their final vote.
Texas, along with New Hampshire, has recently introduced equivalent measures to their state legislatures.
The “Bitcoin Rights” law (House Bill 701) received approval from Kentucky Governor Andy Beshear during the month, marking protection measures for digital asset owners. The Missouri legislative body works to examine a Bitcoin Reserve proposal while it is under their review.
David Kemmerer, who co-founded CoinLedger, expressed his perspective that states are finding different ways to incorporate crypto in responsible ways. The new bill in Arizona shows potential to become a model that other states will use.
Institutional Signals: Bitcoin Adoption Expands in Q1 2025
The trust in Bitcoin adoption continues to grow among both state governments and institutional entities. The public company holdings of Bitcoin grew 16.1% throughout Q1 2025 according to crypto asset manager Bitwise.
In March 2025 a total of 688,000 BTC belonging to these companies amounted to $56.7 billion at the ending quarter value of $82,445 per Bitcoin. The Bitwise report indicates 12 more companies signed up as Bitcoin holders within the quarter which raised the total number of entities to 79.
States interested in crypto reserve bill might find reassurance from this growing institutional practice as long as their financial results stay positive.
What Happens Next?
The Arizona legislature will conduct its third reading followed by a final second reading on the House floor as the next step. The proposed legislation will go to Governor Hobbs after it receives House floor approval. The proposed bill faces a strong likelihood of veto by the governor.
The state treasurer would gain enhanced powers through SB 1373 and SB 1025, which would transform Arizona into one of the initial states maintaining operational crypto or Bitcoin reserves.
The final passage of this legislation will reshape both regulatory standards for digital assets and Bitcoin usage throughout different U.S. states.
FAQs
Arizona’s Crypto Reserve Bill represents what legislation?
SB 1373 represents a proposed legislation that creates a Digital Assets Strategic Reserve Fund through seized digital assets managed by the state treasurer.
What investment limits does the treasurer have regarding digital assets?
The treasurer obtains permission to invest up to 10% of annual funds and such assets can be placed under loan agreements with protective measures in place.
Has the bill become law?
No. The crypto reserve bill stands at the final step before the governor receives it after successfully passing through the House Committee of the Whole.
Under what circumstances does the Arizona Strategic Bitcoin Reserve Act function?
The Arizona Strategic Bitcoin Reserve bill Act stands apart as a different legislative proposal (SB 1025) that enables fund investment through Bitcoin.
Under what factors does this bill risk a veto from Governor Hobbs?
The State Governor, Katie Hobbs, plans to use her veto power on all pending legislation because state legislators must first address disability services funding issues.
Glossary
Digital Assets Strategic Reserve Fund: A state-managed fund known as the Digital Assets Strategic Reserve Fund consists of seized digital assets, which will be utilized for financial investments.
Bitcoin Reserve: Holding Bitcoin as a financial reserve.
House Committee of the Whole: Under this stage, all members of the House assembly meet in a single body to amend bills for further consideration.
Treasurer: The state Treasurer maintains authority to handle public finances.
References
Arizona State Legislature – SB 1373 Status
Bitwise Q1 2025 Bitcoin Holdings Report
The Arizona Republic – Governor Hobbs Vetoes
CoinDesk – Institutional Bitcoin Trends
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