Two Strategic Bitcoin Reserve (SBR) Bills Cleared the Arizona House Rules Committee

Two Strategic Bitcoin Reserve (SBR) bills cleared the Arizona House Rules Committee on March 24, positioning the state at the forefront of efforts to establish

Two bills that would create a Strategic Bitcoin Reserve (SBR) in Arizona passed the state's House Rules Committee on March 24, setting the stage for a full vote on the measures by the House.

The bills, Senate Bill 1373 (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025), will now go to the floor of the House for a vote on their third reading. Both bills were ruled constitutional and in proper form by the House Rules Committee.

The bills have now passed their assigned committees, meaning they should be headed for a full floor vote.

"Good news from Arizona as the House Rules Committee approved both SBR bills (SB1373 and SB1025), ruling them constitutional and in proper form," the watchdog account Bitcoin Laws (@Bitcoin_Laws) posted on X. This puts both bills in a position to be called up for a 3rd reading on the House floor. Both bills have now passed their assigned committees, meaning they should be headed for a full floor vote.

However, Gov. Katie Hobbs (D) could be a huge last hurdle for the SBR in Arizona. "Gov. Katie Hobbs has a notorious reputation for vetoing Republican legislation. Hobbs vetoed ~22% of all bills in 2024. The highest rate in the nation," Bitcoin Laws stated.

The House majority leaders also confirmed the status of the bills.

The majority whip in the 60-seat Arizona House, Republican Ben Toma, toldDecrypt that the House is planning to vote on the bills this week.

The bills would allow the state to invest in bitcoin and other digital assets. SB 1373, also known as the Strategic Digital Assets Reserve Bill, proposes the creation of a strategic digital assets reserve, which would be funded primarily by digital assets seized through criminal proceedings.

The state treasurer would manage the fund and invest no more than 10% of the fund’s total value each fiscal year. The treasurer would also be authorized to take out loans of these assets to maximize returns on the fund, provided that it does not increase the overall financial risk to the state.

The second bill, SB 1025, or the Arizona Strategic Bitcoin Reserve Act, would mandate the Arizona Treasury and the state’s retirement system to invest up to 10% of their available funds in bitcoin. It would also require the treasurer to identify a federal agency or bureau that could hold these bitcoin holdings in a “secure, segregated account.”

The bills are being championed by state lawmakers, who are keen to diversify the state’s investments and capitalize on the potential of digital assets.

Earlier this year, the majority leader of the Arizona House of Representatives, Representative Ben Bishop, expressed his optimism regarding the prospect of the state investing in bitcoin.

In March, the Arizona Senate swiftly approved both SB 1373 and SB 1025. Both bills were passed by comfortable margins, with 23 senators voting in favor and 7 senators voting against.

The bills are now being fast-tracked through the House, where they could be put to a vote as early as this week.

BTC traders were observing price action above the $86,000 level on Friday, with the cryptocurrency sliding from a high of $87,000 to trade in a range-bound fashion.