Crypto In The Desert: Arizona Reserve Bill Advances To 3rd Reading

Arizona’s push to develop state-run cryptocurrency reserves gained momentum this week. One bill cleared a crucial hurdle when the Strategic Digital Assets Reserve Bill (SB 1373) moved through the upper chamber of the House Committee of the Whole on April 17. It is set for a final vote before potentially reaching Governor Katie Hobbs.

Bill Would Create Fund From Seized Crypto Assets

SB 1373 would create a Digital Assets Strategic Reserve Fund comprised of digital assets seized in a criminal proceeding. The state treasurer would manage this fund and could invest up to 10% of its total amount into digital assets each year.

Under the law, Arizona’s treasurer would also be able to lend the assets of the fund to enhance returns. The lending power is accompanied by the requirement that it should not enhance financial risks.

Governor’s Veto Threat Hangs Over Legislation

The bill’s passage can be derailed even if it clears its last House vote. Governor Hobbs recently threatened to veto all bills until lawmakers enact legislation for disability funding. Her history doesn’t look good for the crypto bill – she has already vetoed 15 bills that landed on her desk this week.

Julian Fahrer, CEO of Apollo and founder of Bitcoin Laws, said SB 1373 will pass the House. However, he intimated it could be merged with another crypto-related bill, SB 1062, that would broaden the definition of legal tender to include cryptocurrency.

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