Arizona lawmakers have moved forward with the Strategic Bitcoin Reserve Act (SB 1025), bringing the state closer to integrating Bitcoin into its financial strategy. The Arizona Senate voted 17-11 on February 27 to pass the bill in its third reading, sending it to the House of Representatives for further debate. If approved by the House, the bill will be sent to the governor’s desk for final approval before becoming law.
Key Provisions of the Bill
Introduced by State Senator Wendy Rogers and Representative Jeff Weninger, SB 1025 proposes allowing the Arizona state treasurer to invest up to 10% of public funds in virtual currencies, including Bitcoin. The bill defines virtual currencies as digital assets used as a medium of exchange, a unit of account, and a store of value, while excluding representations of the U.S. dollar or foreign currencies.
The legislation also supports the creation of a Strategic Bitcoin Reserve, detailing measures for secure storage of holdings in segregated accounts and the potential deposit of public assets into a federal reserve if one is established.
Arizona Among Leading States in Bitcoin Legislation
With this bill, Arizona becomes the second U.S. state, following Utah, to push a Bitcoin reserve bill into the final stages of the legislative process. According to a February 28 post by Bitcoin Laws, Arizona has climbed to second place in the so-called Reserve Race.
“Bitcoin Reserve Bill SB 1373 has passed the Senate third reading, by a vote of 17-12. Now moves to the House. AZ moves up to second place in the Reserve Race.”
— Bitcoin Laws (@Bitcoin_Laws), February 28, 2025
Meanwhile, Utah’s Bitcoin reserve bill recently passed the Senate Revenue and Taxation Committee in a 4-2-1 vote and is now awaiting further readings before a final vote.
Mixed Reactions Across U.S. States
According to Bitcoin Reserve Monitor, similar Bitcoin reserve bills are pending in 18 U.S. states, but not all states are welcoming the idea. States such as Montana, Wyoming, North Dakota, South Dakota, and Pennsylvania have rejected proposed crypto investment legislation.
Arizona’s Additional Crypto Legislation
Alongside SB 1025, the Arizona Senate also passed the Strategic Digital Assets Reserve bill (SB 1373) with a 17-12 vote on the same day. However, SB 1373 differs from the Bitcoin Reserve Act as it focuses on managing seized digital assets and state-appropriated funds.
This bill proposes the establishment of a state treasurer-managed Digital Assets Strategic Reserve Fund, which would hold seized crypto assets and funds allocated by the state legislature.
Arizona’s progressive stance on Bitcoin and digital assets is bringing the state closer to becoming a leader in crypto adoption and financial innovation. With SB 1025 and SB 1373 advancing to the House, Arizona could soon join Utah in establishing a state-backed Bitcoin reserve, setting a precedent for other states to follow.
