Arizona Moves Closer to Approving Bitcoin Reserve Bill

• Arizona Senate advances Bitcoin reserve bill, moving closer to final approval in the House.
• SB 1373 proposes a Digital Assets Reserve Fund with a 10% annual investment cap for crypto.
• The country now ranks second in the state Bitcoin reserve race, following closely behind Utah.

Arizona has moved one step closer to approving a Bitcoin reserve bill, pushing it ahead of other states in the race. The Arizona Senate has passed the Strategic Digital Assets Reserve bill (SB 1373) with a 17-12 vote. The bill, which would establish a fund managed by the state treasurer, now moves to the House for further consideration.

The bill was introduced by Republican Senator Mark Finchem. It proposes creating a Digital Assets Strategic Reserve Fund to manage cryptocurrency holdings. The reserve will consist of funds appropriated by the state legislature and seized digital assets. According to the bill’s framework, the state treasurer is authorized to invest up to 10% of total fund deposits in a fiscal year. Additionally, digital assets in the fund may be loaned out to generate returns if it does not increase financial risk for the state.

Arizona is now ranked second in the state Bitcoin reserve race, trailing behind Utah. The growing momentum behind state-level Bitcoin reserves reflects a wider push for digital asset adoption in the U.S. This is driven in part by President Donald Trump’s pro-crypto stance and shifting regulatory dynamics at the federal level.

Dennis Porter, founder of the Satoshi Action Fund, stated that legislation for digital assets will unfold in stages. He noted that federal lawmakers will likely focus first on stablecoins, followed by market structure regulations, and then strategic Bitcoin reserves. His comments highlight the broader regulatory push happening alongside state-level initiatives like Arizona’s.

Another pivotal bill that advanced within the Arizona Senate is the Strategic Bitcoin Reserve Act (SB 1025). Arizona bill SB 1025 serves cryptocurrency public fund investments under the sponsorship of Republican Senator Wendy Rogers and Representative Jeff Weninger. The Arizona Senate approved the bill with a 5-2 vote on January.

Related: Montana Rejects Bitcoin Reserve Bill in 42-58 House Vote

The states of Arizona and Utah take the lead among the 18 U.S. States evaluating similar legislative measures. However, several states such as Montana, Wyoming, North Dakota, South Dakota, and Pennsylvania have voted to deny Bitcoin reserve proposals. State-level initiatives continue to rise which demonstrates an alteration of the U.S. regulatory framework.

Meanwhile, Bitcoin’s price has declined by 17% over the past week amid economic concerns. The proposed tariffs from Trump have created market instability which has resulted in financial market volatility extending to cryptocurrency markets. Market conditions remain challenging although the Bitcoin reserve bill proposed by Arizona signifies an increase in institutional investment toward digital assets.

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