Arizona’s Senate has taken a significant step toward adopting Bitcoin as part of its financial strategy, passing the Strategic Digital Assets Reserve bill (SB 1373) on February 27.
With a vote of 17-12, the bill now moves to the state’s House for further consideration. The development places Arizona behind Utah in the race to become the first U.S. state to approve a crypto investment bill.
The legislation, sponsored by Republican Senator Mark Finchem, proposes the creation of a Digital Assets Strategic Reserve Fund, which would be managed by the state treasurer.
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Arizona’s Bitcoin Reserve Fund to Include Seized Crypto and Appropriated Funds
The fund would consist of both appropriated funds and cryptocurrency seized by the state. The bill limits digital asset investments to 10% of total fund deposits per fiscal year, and the treasurer is permitted to loan digital assets to generate returns, provided it does not increase financial risk to the state.
Alongside SB 1373, another bill—the Strategic Bitcoin Reserve Act (SB 1025)—also cleared the Senate on February 27 with a 17-11 vote. Co-sponsored by Republican Senator Wendy Rogers and Representative Jeff Weninger, SB 1025 focuses on expanding public investment authority to include Bitcoin and other digital assets.
The two bills take different approaches: while Finchem’s bill (SB 1373) establishes a designated reserve fund for crypto investments, Rogers and Weninger’s bill (SB 1025) aims to allow broader public investment in digital assets.
ARIZONA Update:
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. pic.twitter.com/yTOPwW05GW
— Bitcoin Laws (@Bitcoin_Laws) February 28, 2025
Arizona is among 18 U.S. states currently considering Bitcoin reserve bills, but only Arizona and Utah are in the final stages of legislative approval. Meanwhile, similar proposals have been rejected in Montana, Wyoming, North Dakota, South Dakota, and Pennsylvania.
The growing interest in state-backed Bitcoin reserves has been fueled by President Donald Trump’s pro-crypto stance, which has encouraged lawmakers to explore digital asset strategies.
However, Bitcoin’s recent 17% decline over the past week, driven by economic uncertainty and Trump’s proposed tariffs, has raised questions about short-term market stability.
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University Of Austin To Launch $5M Bitcoin Fund
The University of Austin is launching a $5 million Bitcoin fund as part of its $200 million endowment.
Notably, the precedent is set by Emory University. In a regulatory filing last October, it was disclosed that over $15 million in Bitcoin was invested through Grayscale’s spot Bitcoin exchange-traded fund (ETF).
Beyond university endowments, cryptocurrency is gaining traction in the retirement sector as well. A recent Bitget Research report revealed that up to 20% of Generation Z and Generation Alpha are open to receiving pensions in cryptocurrency.
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Key Takeaways
- Arizona’s Senate has passed the Strategic Digital Assets Reserve bill (SB 1373).
- Arizona and Utah are leading the race among 18 U.S. states considering Bitcoin reserve bills.
- The push for Bitcoin reserves is fueled by President Trump’s pro-crypto stance, but Bitcoin’s recent 17% decline has raised concerns about market stability.
The post Arizona Senate Advances Bitcoin Reserve Bill, Trails Utah In Crypto Legislation Race appeared first on 99Bitcoins.
