On March 24, two Strategic Bitcoin Reserve (SBR) bills successfully cleared the Arizona House Rules Committee, placing the state at the forefront of initiatives aimed at establishing government-held Bitcoin reserves. The measures, Senate Bill 1373 (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025), are now set to move to the floor of the state’s House of Representatives for a full vote.
According to a post by the watchdog account Bitcoin Laws (@Bitcoin_Laws), the House Rules Committee confirmed the bills were approved, stating: “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, Governor Katie Hobbs (D) may pose a significant challenge for the SBR initiatives in Arizona. Her history of vetoing Republican-backed legislation is notorious; in 2024 alone, she vetoed approximately 22% of all submitted bills, the highest rate in the nation as noted by Bitcoin Laws.
The Arizona House maintains a Republican majority with 33 members compared to 27 Democrats. Despite this, speculation surrounds Governor Hobbs’ potential to block the bills should they pass through both chambers, given her past decisions that resulted in 73 vetoes out of 330 bills in 2024.
Senate Bill 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 manage the fund and restrict annual investments to no more than 10% of its total value, while also permitting loans of these assets to enhance returns without elevating overall financial risk.
On the other hand, SB 1025 (Arizona Strategic Bitcoin Reserve Act) emphasizes BTC investments. This bill would permit the Arizona Treasury and the state’s retirement system to invest up to 10% of available funds in Bitcoin and outlines provisions for securely storing these investments in a segregated account within a federal reserve, should such a facility be established.
The Strategic Bitcoin Reserve Bill Race
With both bills making headway through committee approval, Arizona is leading what some have termed a nationwide race for states to incorporate Bitcoin into their strategic reserve portfolios.
Notably, the enthusiasm is not limited to Arizona. Other states are also advancing SBR legislation. On the same day, the Oklahoma House of Representatives voted 77–15 in favor of HB 1203, aligning Oklahoma with Arizona as a frontrunner as highlighted by Bitcoin Laws. This bill has now progressed to the state Senate.
Earlier this month, the Texas Senate approved SB 21 (Strategic Bitcoin Reserve Bill) with a 25–5 vote, sending it to the House where a new bill has been introduced to limit the previously unrestricted investments to $250 million, inciting further debate.
Utah has similarly passed SBR legislation through one legislative chamber, joining a select group of states nearing completion in this legislative endeavor. “Oklahoma now joins Texas, Arizona, and Utah as the states that have passed Bitcoin Reserve legislation through one chamber,” Bitcoin Laws noted, emphasizing Arizona’s ongoing lead in this initiative.
As of this writing, Bitcoin is valued at $86,452.
