Key Points
- Arizona’s Digital Assets Strategic Reserve Fund (SB1307) has been approved and is in its final review stage.
- A proposed Bitcoin Reserve intends to allocate 10% of public funds to Bitcoin.
Arizona’s proposed Digital Assets Strategic Reserve Fund, also known as SB1307, has been given the green light and is currently in its final stage of review. This advancement comes despite the ongoing vetoes of bipartisan bills by Governor Katie Hobbs.
Advancement of SB1307
The House Committee of the Whole, with its 60 members, has supported SB1307, pushing it to the final voting phase. This phase involves the full House deciding the fate of the bill. If approved, the bill would only be enacted if Governor Hobbs grants final approval.
The state treasurer would manage the proposed strategic fund, which would primarily consist of assets seized by the state, along with funds approved by the legislature. The treasurer would be allowed to allocate no more than 10% of the fund annually into digital assets. Furthermore, a part of the fund could be lent out to generate returns, as long as it does not carry significant financial risk or burden.
Potential Obstacles
However, SB1307 might still face obstacles. Governor Hobbs has threatened to veto bills unless the legislature prioritizes disability funding. She rejected 15 bills just last week, adhering strictly to that demand. If lawmakers do not address her condition for bill approval and SB1307 is passed, the creation of a strategic crypto reserve fund may not come to fruition.
Despite this, U.S. investors’ interest has surged in the past day. Bitcoin purchases have increased, with the Coinbase Premium Index showing a slight rise, indicating a heightened interest in this asset.
Arizona continues to lead in digital asset adoption among all 50 states. Similar to SB1307, the Arizona Strategic Bitcoin Reserve Act (SB1025) has also been moved to the full House for a final vote. This proposed Bitcoin Reserve is distinct from the Digital Assets Strategic Reserve Fund. It plans to allocate 10% of public funds specifically to Bitcoin. This allocation aims to diversify state holdings into alternative stores of value.
Meanwhile, New Hampshire and Texas have shown progress with their crypto initiatives, both entering second committee reviews. Oklahoma, however, fell short—failing to move a similar proposal to its third reading. This legislative momentum reflects a growing confidence in digital assets such as Bitcoin and Ethereum, nudging them closer to mainstream financial legitimacy.
