Arizona took a significant step toward becoming a national leader in digital asset policy with the passage of the Strategic Digital Assets Reserve Bill (SB 1373) out of a House committee. Arizona Moves Forward in Crypto Legislation Race as SB 1373 Clears House Committee The bill now heads for a third reading and a full vote before heading to Gov. Katie Hobbs' desk for final approval. SB 1373 proposes creating a state-managed strategic reserve fund for digital assets, leveraging legislative appropriations and crypto assets seized by law enforcement. Under the bill, the state treasurer would have the authority to manage the fund using qualified custody solutions or state-registered exchange-traded products and would also be able to lend out digital assets to generate additional returns. The bill sets limits on investment exposure by stating that not more than 10% of the fund can be allocated in a single financial year. The bill defines “digital assets” broadly to include Bitcoin, stablecoins, non-fungible tokens (NFTs) and other blockchain-based instruments that carry economic or access rights. SB 1373 is one of two high-profile digital asset initiatives advancing in the Arizona legislature. The other, SB 1025 — the Arizona Strategic Bitcoin Reserve Act, which passed the House on April 1 — would allow the state to invest up to 10% of state funds in virtual currency assets. Arizona’s crypto reserve is moving quickly through the legislative arena, leaving states like Texas and New Hampshire behind, according to research from Bitcoin Laws. Governor Katie Hobbs has vowed to veto all legislation until lawmakers agree on funding for disability services, creating uncertainty over the bills’ final approval. Still, Arizona’s progress signals growing momentum at the state level to integrate digital assets into public finance frameworks, as U.S. states increasingly turn to blockchain technology and cryptocurrencies as strategic economic tools. *This is not investment advice. Continue Reading: Arizona State of the USA Passed the Digital Assets Bill in the Parliament! Here are the Details