Arizona Crypto Reserve Bill SB 1373 Passes Senate, Nears Final Approval

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Highlights:

Arizona’s SB 1373 moves closer to law after passing the Senate with a 17-12 vote.
Governor Hobbs vows to veto all legislation until disability funding is addressed.
Despite market challenges, US states show growing support for crypto investments.

One of Arizona’s crypto reserve bills is a step closer to becoming law after passing the state Senate. On February 27, the Strategic Digital Assets Reserve bill (SB 1373), led by Republican Senator Mark Finchem, passed its third reading with a 17-12 vote. The proposal will now be reviewed by the Arizona House of Representatives.

SB 1373 aims to establish a Digital Assets Strategic Reserve Fund, which would be composed of digital assets seized through criminal proceedings and managed by Arizona’s state treasurer. The bill allows the treasurer to invest up to 10% of the fund’s total value in digital assets during any given fiscal year. It also grants the treasurer the authority to loan out the fund’s assets to enhance returns, as long as doing so does not increase the financial risks involved.

ARIZONA Update:

Bitcoin Reserve Bill SB 1373 has been passed by the House Committee of the Whole (with a minor amendment).

The next step is Third Reading and final floor vote. pic.twitter.com/oOahjbZATR

— Bitcoin Laws (@Bitcoin_Laws) April 17, 2025

Governor Hobbs’ Veto Threatens Crypto Bill Progress

Although the bill has cleared the House committee stage, its future remains uncertain. Governor Hobbs has pledged to veto all legislation until lawmakers address funding for disability services. She has already rejected 15 bills this week alone. In the past, she has also used her veto power on several House-approved proposals.

It’s shameful that a few, extreme Republican legislators are holding funding for Arizonans with disabilities hostage to their political theater.

Business as usual cannot continue until Arizonans with developmental disabilities and their caregivers have the certainty they need.

— Governor Katie Hobbs (@GovernorHobbs) April 17, 2025

Alongside SB 1373, another proposal titled the Strategic Bitcoin Reserve Act (SB 1025) is also making progress. Co-sponsored by Republican Senator Wendy Rogers and Representative Jeff Weninger, the bill was approved in the Senate’s third reading on February 27 with a 17-11 vote. This proposal would allow the state treasury and retirement fund to invest up to 10% of their available assets in Bitcoin.

Crypto Bills Gain Momentum Despite Market Setbacks

At present, 18 US states have crypto reserve bills awaiting Senate votes, with Arizona and Utah nearing the final approval stages. Crypto investment bills have been rejected in North Dakota, South Dakota, Montana, Wyoming, and Pennsylvania. However, the overall trend shows growing support for crypto investments across the country.

As these bills advance, the crypto market is grappling with economic uncertainty. Bitcoin, for example, has fallen by 17% in the past week, struggling to hold onto its gains amid concerns about upcoming tariffs. Despite these setbacks, the US is witnessing growing support for crypto investments, partly driven by former President Donald Trump’s pro-crypto policies. Bitcoin is currently priced at $84,575, maintaining its upward trend with a slight 0.18% increase since yesterday.

In the first quarter of 2025, publicly traded companies increased their Bitcoin holdings by 16.1%, reaching a total of around 688,000 BTC. This surge reflects continued institutional interest in Bitcoin despite ongoing market fluctuations. The combined value of these holdings reached $56.7 billion. Additionally, the number of companies with Bitcoin on their balance sheets rose from 67 to 79, with 12 firms purchasing Bitcoin for the first time.