Arizona House Committee Advances State Digital Asset Reserve Bill – Coincu

Arizona’s Strategic Digital Asset Reserve Act, known as SB 1373, has been approved by an Arizona House committee. It aims to establish a reserve funded by legislative appropriations and seized cryptocurrencies.

The bill could pioneer state-level digital asset custody if approved, but stands in jeopardy as Governor Katie Hobbs has pledged vetoes due to budget disagreements.

Arizona’s SB 1373 Seeks State-Level Cryptocurrency Custody

Arizona’s SB 1373 proposes creating a digital asset strategic reserve, steered by the state legislature. The State Treasurer has the role of managing the reserve, integrating cryptocurrency seized in criminal actions. The bill suggests legislative appropriations and seized assets will form the bulk of the reserve. Presently, it awaits further readings and a full House vote.

Possible implementation could transform Arizona’s financial management, offering a structured approach to harnessing digital currencies. The plan outlines utilizing qualified custody solutions for security, with a fiscal limit of investing only up to 10% of total funds annually.

Governor Katie Hobbs has expressed concern over unrelated budget issues, posing a threat to the bill’s advancement. Her commitment to veto all legislation pending budgetary resolutions remains firm. On April 17, Hobbs labeled the current budget discussions as “unserious and a complete nonstarter,” forecasting potential political challenges for SB 1373.

Other States’ Bitcoin Reserves Signal Growing Trend

Did you know? Other states, like Texas and New Hampshire, have advanced their own Bitcoin reserve bills, illustrating a growing trend in digital asset adoption at the state level.

According to CoinMarketCap, Bitcoin (BTC) is trading at $84,669.70 with a market cap of $1.68 trillion and holding a 63.01% market dominance. Over the past 24 hours, trading volume hit $20.89 billion, experiencing a 22.86% dip. Prices have seen a 6.74% increase in the last day.

The Coincu research team suggests the bill could prompt a shift where state treasuries adopt more digital asset-related financial practices. Using confiscated cryptocurrency emphasizes evolving perceptions of digital assets, potentially affecting regulatory and economic frameworks at both state and national levels.