Arizona is making a big push to become the first US state with a government-held Bitcoin reserve. Two bills, SB 1373 and SB 1025, just passed a key committee and are headed for a full vote in the state House.
The Bills
SB 1373 (Strategic Digital Assets Reserve Bill): This bill creates a fund using Bitcoin and other digital assets seized from criminals. The state treasurer would manage the fund, investing up to 10% of its value yearly and potentially lending out assets to increase returns, as long as it doesn’t increase risk.
SB 1025 (Arizona Strategic Bitcoin Reserve Act): This bill lets the Arizona Treasury and the state’s retirement system invest up to 10% of their money in Bitcoin. The Bitcoin would be kept in a secure, separate account – ideally, within a future federal reserve facility.
The Governor’s Veto Power: A Potential Roadblock
While the bills have momentum, Governor Katie Hobbs could veto them. She’s known for vetoing Republican-backed legislation, and has a high veto rate. This is a major concern, as the Arizona House has a Republican majority, but not a large enough one to easily override a veto.
The Competition Heats Up
Arizona isn’t alone in this Bitcoin reserve race. Other states are also pushing similar legislation:
- Oklahoma: Their Bitcoin Reserve Bill (HB 1203) passed the House and is now heading to the Senate.
- Texas: The Senate approved SB 21 (Strategic Bitcoin Reserve Bill), but there’s now a debate about capping the reserve at $250 million.
- Utah:
Utah has also passed a similar bill through one legislative chamber.
Currently, Arizona is leading the pack, with Oklahoma and Texas close behind. Utah is also in the running. The outcome of these bills will significantly impact the future of state-level Bitcoin adoption in the US.
