#Arizona Approves Bill to Create State-Run Crypto Reserve

Arizona has taken a major step toward integrating cryptocurrency into public finance by approving legislation that proposes the creation of a state-managed reserve consisting of Bitcoin, NFTs, and stablecoins. The bill, known as the Strategic Digital Assets Reserve Bill (SB 1373), allows the state treasurer to invest and lend digital assets through state-registered crypto products and approved custodians, aiming to generate additional revenue.

Although the bill has received bipartisan support, its future is uncertain due to the governor’s threat to veto over unrelated budget issues. The proposed legislation would cap crypto investments at 10% of the total state treasury, ensuring risk control.

If enacted, Arizona would become one of the first U.S. states to officially maintain a crypto reserve. The reserve would be funded through legislative appropriations and assets seized by law enforcement, creating a self-sustaining fund with variable inflows.

Having passed a key committee vote, the bill now awaits one final vote before reaching the governor’s desk. This positions Arizona ahead of other states like Texas and New Hampshire, which are still in early stages of exploring blockchain regulation.