Arizona Crypto Reserve Bill (SB 1373) was passed by the House Committee of the Whole on April 17, 2025. This puts Arizona in the ranks among the leaders of government-level crypto adoption.

Now it is one vote away from Gov. Katie Hobbs’ desk. In doing so, Arizona would become the first state to establish an official cryptocurrency reserve should it be approved.

Key-Takeaways:

• SB 1373 and SB 1025 would create an official crypto reserve in Arizona, and its momentum towards digital asset adoption is really strong.
• But bill consolidation could still help move Arizona’s crypto strategy forward, despite the fact that Massachusetts Gov. Hobbs’ veto pledge on budget issues is a major hurdle.

Strategies for Structuring the Digital Assets Fund 

Arizona Crypto Reserve Bill supposes the establishment of a Digital Assets Strategic Reserve Fund. The digital assets to be seized in the criminal cases will be included in this fund.

The fund would be managed by the state treasurer. If it’s not risky to the state, the state can lend as much as they want to, as they can invest up to 10 percent annually in digital assets.

If passed, the Arizona Crypto Reserve Bill would create the foundation of how to govern state-owned cryptocurrency. Such a move could potentially cause other states looking into similar policies to follow their path.

It is a huge step in digital assets’ recognition in state finance. However, it reveals a good ascendancy of crypto in the modern financial system.

Parallel Bitcoin-Specific Legislation

Among these lawmakers are those promoting a companion bill around Bitcoin. Arizona Strategic Bitcoin Reserve Act (SB1025) is a bill that aims to stop direct Bitcoin investments.

The state would be able to invest up to 10% of funds in Bitcoin, and it would be able to do so through the state treasury and retirement system. The House Committee of the Whole passed the bill on April 1, and the legislation is waiting to be put on the floor.

This also confirms that Arizona’s adoption of digital assets is a two-pronged approach. It is both general crypto regulation and targeted specifically at Bitcoin.

The two sides of the coin are the Crypto Reserve Bill which covers a bunch of digital assets, and SB 1025, which puts Bitcoin as a strategic reserve. It gives Arizona the ability to diversify its crypto holdings and to focus on the most established asset.

Gubernatorial Hurdles 

The Arizona Crypto Reserve Bill has progressed despite other hindrances. Since then, disability services have been promised by Governor Katie Hobbs that she would veto all bills until such funding is available.

Any bill not already on my desk will be vetoed until we have a serious, bipartisan funding solution that protects health care for Arizonans with disabilities.

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

And she has already vetoed 15 bills in one week. Her solid record on Republican and bipartisan legislation is an onerous obstacle to the bill’s passage.

The Arizona Crypto Reserve Bill may change in further revisions before entering into final approval. It is able to coalesce with another crypto bill, SB 1062, which intends to consider crypto as legal tender.

Bitcoin Laws founder Julian Fahrer says the consolidation could help the bill, however. It may also help support Arizona’s broader digital asset strategy, even if the governor opposes it.

The Arizona Crypto Reserve Bill puts the state in the vanguard of a growing number of U.S. states inclined to establish an official cryptocurrency reserve for the government. Now it is leading a competitive move to incorporate digital assets in public finance.

In the Senate and in New Hampshire’s House, Bitcoin reserve bills have passed. On March 7, Utah passed Bitcoin legislation only to remove the reserve provision later before final approval.

This is one of the best bills making vague progress so far. But Texas’s bill is more likely to become law for the simple reason that it has fewer hurdles to overcome.

How other states might handle crypto adoption is determined by Arizona’s outcome. This may decide whether digital assets become standard provisions of state treasury approaches.

Conclusion

The Arizona Crypto Reserve Bill  is a big step in treating crypto as something the state holds for itself. This is one of the things currently stoking growing interest in digital assets being integrated into public finance. If SB 1373 or 1025 are signed, Arizona will be a trailblazer of state crypto adoption.