The Senate of Arizona has pushed forward a Bitcoin reserve legislation, positioning it in second place behind Utah in a competition among US states to secure approval for a cryptocurrency investment bill.
The Arizona Senate approved the Strategic Digital Assets Reserve bill (SB 1373) during its third reading on February 27 with a tally of 17 votes in favor and 12 opposed. It now proceeds to the House of Representatives.
The legislation, backed by Republican Senator Mark Finchem, aims to establish a “Digital Assets Strategic Reserve Fund” overseen by the state treasurer, which would include funds allocated by the legislature as well as cryptocurrencies confiscated by the state.
The treasurer is restricted from investing more than 10% of the total fund contributions in any given fiscal year but is permitted to loan digital assets from the fund to yield returns, provided it does not elevate financial risks for the state.
“[Like it or not,] legislation will unfold at the federal level in this sequence: Stablecoins, Market Structure, and Strategic Bitcoin Reserve,” stated Satoshi Action Fund founder Dennis Porter in a post on X dated February 28.
Arizona advances in the strategic reserve competition. Source: Bitcoin Laws
Another Bitcoin reserve proposal is also progressing through the Arizona Senate. The Strategic Bitcoin Reserve Act (SB 1025), co-sponsored by Republican Senator Wendy Rogers and Representative Jeff Weninger, also secured passage in the Senate during its third reading on February 27, with a vote of 17 for and 11 against.
The legislation endorsed by Rogers and Weninger concentrates on the investment authority for public funds to acquire crypto assets, while the bill supported by Finchem creates a designated fund for confiscated digital assets and allocated funds.
Related: Michigan is the latest state to suggest a crypto reserve bill
Currently, 18 US states have crypto reserve bills awaiting Senate votes, while two — Arizona and Utah — are nearing the end of the approval process.
State crypto investment bills have been turned down in Montana, Wyoming, North Dakota, South Dakota, and Pennsylvania.
Status of crypto reserve-related legislations. Source: Bitcoin Reserve Monitor
Proposals for Bitcoin reserves are amassing support across the US, influenced by President Donald Trump’s favorable crypto policies.
Meanwhile, Bitcoin has declined by 17% over the last week as it grapples with maintaining its gains due to economic instability stemming from Trump’s extensive incoming tariffs.
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