Arizona Establishes a Crypto Reserve with New Legislation
Arizona is accelerating its efforts in the cryptocurrency sector. The Arizona House of Representatives' Commerce Committee has approved the Bitcoin Strategic Reserve Act, a significant milestone in the state's initiative to integrate digital assets into its financial system. The approved bill proposes the establishment of a special fund managed by the Arizona State Treasury for Bitcoin (BTC) and other crypto assets.
What Does the Law Introduce? Arizona Sets Up a Crypto Reserve
The bill, known as SB1373, was introduced by Republican Senator Mark Finchem. Under this law, the “Digital Assets Strategic Reserve Fund” will be created and managed by the Arizona State Treasury. The fund will be supported by:
- Budgets allocated by the legislature,
- Crypto assets seized by the state,
- Revenues generated from the management of crypto assets.
A key provision of the law is the implementation of risk mitigation measures. No more than 10% of the total fund deposits may be used for investment in any given fiscal year, ensuring that the state's financial risk is minimized.
Additionally, the law allows for revenue generation through digital assets, but this will be strictly regulated to prevent increased financial liabilities for the state.
From Senate to House: A Fast-Tracking Legislative Process
The SB1373 bill was approved in its third Senate vote with 17 votes in favor and 12 against. Following this vote on February 27, 2025, the bill was sent to the House of Representatives, where it received approval from the Commerce Committee. The swift progression of the bill demonstrates Arizona’s commitment to cryptocurrency adoption.
Arizona Leads the U.S. in Crypto Reserve Legislation
Arizona is among the first states in the U.S. to implement a crypto reserve law. It follows Utah as the second state to establish a legal framework for digital asset investments.
In addition to SB1373, another notable bill, SB1025, is gaining attention. Sponsored by Republican Senator Wendy Rogers and Representative Jeff Weninger, the Strategic Bitcoin Reserve Act (SB1025) was passed by the Senate with 17 votes in favor and 11 against. This bill differs from SB1373 in that it seeks to allow public funds to be invested in cryptocurrencies.
The Future of Arizona’s Crypto Policy
Arizona aims to be a leader in incorporating Bitcoin and other digital assets into its financial reserves. Both SB1373 and SB1025 highlight the state’s strong interest in the crypto market and its ambition to lead in this sector.
Beyond investment, Arizona is also planning to develop management and oversight mechanisms for crypto assets. If these initiatives prove successful, Arizona is expected to become one of the key states shaping the U.S. crypto ecosystem.
