Arizona’s “Strategic Digital Currency Reserve Fund” bill has passed the House Committee of the Whole with minor amendments. The bill now awaits a third reading before finally reaching the Governor’s desk.
Bill Passes Committee
On Thursday, the novel bill passed in an informal session of the House, allowing lawmakers more time for review and minor amendments.
Like many other SBR (Strategic Bitcoin Reserve) bills in other states, SB 1373 will authorize the safekeeping of seized digital currencies and other such funds in “secure custody solutions or exchange-traded products.”
Under the supervision of the Secretary of the Treasury, the state could invest a maximum of 10% of the fund’s annual inflows and simultaneously lend these digital currencies to generate returns, provided there is minimal financial risk.
“Funds in this reserve will be continuously provided and exempt from normal appropriation sunset rules, giving the Secretary of the Treasury flexibility in managing investments in digital currencies,” the bill states.
To ensure security and transparency, the bill establishes strict custody requirements, such as non-localized hardware maintenance, regular audits, multi-party governance, exclusive key access, and robust recovery protocols.
Governor Hobbs will most likely veto the bill
The bill passed the Rules Committee on March 24, 2025, with eight votes in favor and no votes against, suggesting a brighter future for digital currency legislation. With the bill now headed to Governor Katie Hobbs’s desk, the question remains whether the Democratic state legislature will approve it.
Governor Hobbs reportedly has a knack for vetoing Republican-introduced legislation, making the bill’s prospects uncertain even if it makes it past third reading in the House. Of all 330 bills passed by the state legislature, Hobbs vetoed a whopping 73, making her the governor with the most vetoes in two years in office.
In addition, Governor Hobbs announced Thursday a temporary stay on legislative passage until Republican lawmakers cooperate in passing a bipartisan health care protection bill for people with disabilities. This stay applies to all bills that have not yet been referred to the governor.
Hobbs called the actions of certain members of the Republican majority “shameful” for holding “people with disabilities in Arizona hostage to their own self-inflicted chaos” and vowed to continue her veto streak until the bill is adequately advanced.
“But the inaction of a few extreme Republican legislators is unacceptable, and business as usual cannot continue until people with developmental disabilities in Arizona and their caregivers have the safety they need,” said Governor Hobbs.
Due to Hobbs’ current stance on the legislation, the “Strategic Digital Currency Reserve Fund” bill is at risk of being vetoed. Meanwhile, Grand Canyon State maintains its leadership position among the 26 U.S. states seeking to establish strategic Bitcoin reserves.
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