The Arizona Senate advanced two crypto reserve bills to modernize state finance on Feb. 27. These bills aim to establish a Digital Assets Strategic Reserve Fund and allow public funds to invest in cryptocurrencies.
Arizona’s Crypto Bills
The legislature approved the Strategic Digital Assets Reserve bill (SB 1373) by a 17–12 vote. Sponsored by Republican Sen. Mark Finchem, this measure will create a Digital Assets Strategic Reserve Fund managed by the state treasurer. The fund will combine state-appropriated dollars with digital assets seized by law enforcement, limiting investments to no more than 10% of total deposits in any fiscal year. The treasurer may also loan digital assets to generate returns, provided it does not increase financial risk.
A second measure, the Strategic Bitcoin Reserve Act (SB 1025), passed with a 17–11 vote. Co-sponsored by Republican Sen. Wendy Rogers and Rep. Jeff Weninger, it allows public funds to invest directly in cryptocurrencies. Both bills now move to the state House for further discussion.
Legislative Race
Arizona’s legislative efforts are part of a national trend with states exploring digital asset integration in public finance. Other states, including Utah and Texas, have pending crypto reserve proposals making significant progress. Utah has successfully passed crucial votes for its own crypto reserve bill, while Texas’s Senate Bill 21 has moved past its senate banking committee.
In contrast, proposals in Montana, Wyoming, North Dakota, South Dakota, and Pennsylvania have been dismissed, showcasing a varied national response.
Advocates argue that establishing state-managed digital reserves supports public finance modernization and resilience against economic volatility. Nevertheless, critics warn that the crypto market’s risks must be approached cautiously.
Ongoing discussions in Utah, Arizona, Texas, and other states may establish vital precedents for digital asset management in public finance, potentially impacting future federal regulations.
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