Arizona Senate Approves Crypto Reserve Bills

Arizona's crypto reserve bills have taken a significant step towards becoming law after passing the state's Senate. The Strategic Digital Assets Reserve bill (SB 1373), sponsored by Republican Senator Mark Finchem, was approved on its third reading on Feb. 27 with a vote of 17 for and 12 against. The bill now advances to the state's House.

The bill aims to create a "Digital Assets Strategic Reserve Fund" administered by the state treasurer, which would consist of money appropriated by the legislature and crypto seized by the state. The treasurer can invest up to 10% of the total fund deposits in any fiscal year and may loan digital assets from the fund to generate returns, provided it doesn't increase financial risks to the state.

In addition to SB 1373, another Bitcoin reserve bill, the Strategic Bitcoin Reserve Act (SB 1025), co-sponsored by Republican Senator Wendy Rogers and Representative Jeff Weninger, also passed the Senate's third reading on Feb. 27 with a vote of 17 for and 11 against. This bill focuses on investment authority for public funds to invest in crypto assets.

Currently, 18 US states have crypto reserve bills pending Senate votes, with Arizona and Utah being in the final stages of the approval process. While state crypto investment bills have been rejected in Montana, Wyoming, North Dakota, South Dakota, and Pennsylvania, the trend indicates growing support for crypto investment across the US.

As these bills progress, the crypto market faces economic uncertainty. Bitcoin, for instance, has experienced a 17% drop over the past seven days, struggling to maintain gains amidst concerns over incoming tariffs. Despite these challenges, the US continues to see an increase in support for crypto investment, with President Donald Trump's pro-crypto policies contributing to this trend.