Arizona Takes Lead In Race For Strategic Bitcoin Reserve

Two Strategic Bitcoin Reserve (SBR) bills cleared the Arizona House Rules Committee on March 24, positioning the state at the forefront of efforts to establish government-held BTC reserves. Both measures—Senate Bill 1373 (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025)—will now move to the floor of the state’s House of Representatives for a full vote.

In a post on X, the watchdog account Bitcoin Laws (@Bitcoin_Laws) confirmed that the House Rules Committee approved the bills. According to the update: “Arizona’s House Rules Committee passed both SBR bills (SB1373 and SB1025), ruling them “constitutional and in proper form.” The bills have now passed their assigned committees, meaning they should be headed for a full floor vote.”

However, Gov. Katie Hobbs (D) could be a huge last hurdle for the SBR in Arizona. “Gov. Katie Hobbs has a notorious reputation for vetoing Republican legislation. Hobbs vetoed ~22% of all bills in 2024. The highest rate in the nation,” Bitcoin Laws writes via X.

The Republican majority in the 60-seat Arizona House stands at 33 members to the Democrats’ 27. Nonetheless, Governor Katie Hobbs’ established habit of vetoing bills—73 out of 330 in 2024—has fueled speculation that she may block the legislation, should it pass both legislative chambers.

SB 1373 (Strategic Digital Assets Reserve Bill) proposes the establishment of a strategic digital assets reserve primarily funded by digital assets seized through criminal proceedings. The state treasurer would oversee the fund, investing no more than 10% of its total value each fiscal year. Additionally, the treasurer could authorize loans of these assets to boost returns, provided it does not raise overall financial risk.

SB 1025 (Arizona Strategic Bitcoin Reserve Act) focuses on BTC investments. The bill would empower the Arizona Treasury and the state’s retirement system to invest up to 10% of available funds in BTC. It also makes provisions for storing these Bitcoin holdings in a “secure, segregated account” within a federal reserve, if such a facility is ever established.

The Strategic Bitcoin Reserve Bill Race

With both bills advancing through committee, Arizona has taken the lead in what many are calling a nationwide race among states to incorporate BTC into their strategic reserve portfolios.

The momentum is not confined to Arizona. Other states are also actively pursuing SBR legislation: Also on March 24, the Oklahoma House of Representatives voted 77–15 in favor of HB 1203. “Big Oklahoma update: Bitcoin Reserve Bill HB1203 passes the House, 77-15. OK’s bill now moves into equal second place in the State Reserve Race with Texas’ SB21. Arizona remains in the lead,” Bitcoin Laws noted. The measure will now head to the state Senate.

Earlier this month, the Texas Senate approved SB 21 (Strategic Bitcoin Reserve Bill) by a 25–5 vote, sending it to the state’s House. Soon after, Democratic Representative Ron Reynolds introduced a new bill to cap the previously unlimited reserve at $250 million, injecting fresh debate into the legislation.

Utah has similarly passed SBR legislation through one legislative chamber, making it part of the small cohort of states that are close to the finish line. “Oklahoma joins Texas, Arizona, and Utah as the only states legislatures to pass Bitcoin Reserve legislation through one chamber,” Bitcoin Laws stated and added “Arizona remains in the lead.”

At press time, BTC traded at $86,452.

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