On March 24, two pivotal digital asset reserve legislations in Arizona advanced through Arizona’s House Rules Committee and are now set to be presented for a comprehensive vote on the House floor.
If enacted, these bills could enable Arizona to create strategic reserves for digital assets, comprising current assets seized via criminal investigations along with newly allocated public resources.
The Republican majority, holding 33-27 in Arizona’s House of Representatives, provides a favorable outlook for the passage of both bills.
Source: Bitcoin Laws
However, as per Bitcoin Laws, the ultimate obstacle may come from the state’s Democratic governor, Katie Hobbs, who has a track record of vetoing legislation, having rejected 22% of bills in 2024 — the highest percentage among state governors.
Overview of Arizona’s two cryptocurrency bills
The two proposals recently endorsed by Arizona’s House Rules Committee are the Strategic Digital Assets Reserve Bill (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025).
The Strategic Digital Assets Reserve Bill (SB 1373) aims to form a strategic reserve of digital assets, comprising digital assets confiscated through legal action and managed by the state treasurer.
The treasurer would be restricted to investing no more than 10% of the overall value of the fund each fiscal year. Nonetheless, they could also lend the assets of the fund to boost returns, provided that such actions do not elevate financial risks.
The Arizona Strategic Bitcoin Reserve Act (SB 1025) specifically focuses on Bitcoin (BTC). The legislation suggests permitting Arizona’s Treasury and state pension system to allocate up to 10% of its available resources into Bitcoin.
Furthermore, SB 1025 would allow the state’s Bitcoin reserve to be securely kept in a segregated account within a federal Bitcoin reserve, if one is set up.
While Arizona is currently perceived as taking the lead in the effort to create a state-based digital asset reserve, numerous other states are closely following its progress.
On March 6, the Texas Senate approved the Strategic Bitcoin Reserve Bill (SB-21) with a vote of 25-5. The Texas legislation still requires a vote in the House and the governor’s approval to become law. After this vote, a new proposal was introduced by Democratic Representative Ron Reynolds to limit the previously unregulated reserve to $250 million.
Utah has also recently enacted Bitcoin legislation, albeit all mentions of a strategic reserve were eliminated at the last moment.
Meanwhile, the Oklahoma House passed its Bitcoin Reserve Bill HB1203, 77-15 on March 25, which will move on to the state senate.
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