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The state of Arizona in the USA has passed the Digital Holdings Bill in the House! Here are the details.
Arizona has taken an important step towards becoming a national leader in digital asset policy with the passage of the Strategic Digital Assets Reserve Bill (SB 1373) in the congressional committee.
SB 1373 Advances in Arizona Crypto Legislation While Clearing the House Committee
The draft is now going for a full vote before going to Governor Katie Hobbs' desk for a third reading and final approval.
SB 1373 proposes the establishment of a government-managed strategic reserve fund for digital assets, utilizing legislative appropriations and crypto assets seized by law enforcement.
According to the proposal, the state treasurer will have the authority to manage the fund using qualified custody solutions or products traded on a government-registered exchange, and may also lend digital assets to generate additional returns.
The proposal sets limits on exposure to investment by stating that more than 10% of the fund cannot be allocated in a single fiscal year.
The draft broadly defines "digital assets" to include Bitcoin, stablecoins, non-fungible tokens (NFTs), and other blockchain-based tools that carry economic or access rights.
SB 1373 is one of two high-profile digital asset initiatives advancing in the Arizona legislature. The other is SB 1025 – the Arizona Strategic Bitcoin Reserve Act, which passed the House on April 1, allowing the state to invest up to 10% of state funds in virtual currency assets.
According to Bitcoin Laws' research, Arizona will quickly surpass states like Texas and New Hampshire as it progresses in the crypto reserve legislative arena. Governor Katie Hobbs created uncertainty over the final approval of the bills by promising to veto all legislation until lawmakers reach an agreement on funding for disability services.
Nevertheless, the progress recorded by Arizona indicates an increasing momentum at the state level for the integration of digital assets into public finance frameworks, alongside the growing tendency of U.S. states to turn to blockchain technology and cryptocurrencies as strategic economic tools.