Arizona State Senator Mark Finchem is proud to announce that his bill, SB 1373 – Digital Assets Strategic Reserve Fund, has passed the House Commerce Committee on a 6-4 vote. This important legislation establishes a state-managed fund that holds digital assets such as Bitcoin, stablecoins, and other blockchain-based tokens. The fund will consist of both digital assets lawfully seized by the state and monies appropriated by the legislature, and will be securely managed by the Arizona State Treasurer. As digital economies continue to expand, Arizona is taking a forward-thinking step to position itself as a leader in fiscal innovation and long-term financial preparedness.
The Digital Assets Strategic Reserve Fund is designed to act as a safeguard and strategic tool for Arizona’s future. By securely holding digital assets, the state can diversify its financial base and responsibly engage in the emerging digital asset economy. The bill places strict limits on investment risk by capping annual investment of fund monies at 10%, and even allows for the assets to be loaned out—when appropriate—to generate additional returns for the state, all without increasing financial risk. This ensures that taxpayer interests are protected while exploring innovative financial strategies.
To guarantee the highest level of security and integrity, SB 1373 outlines strict technical and operational requirements for the custody of these digital assets. These include cryptographic private key protections, geographic redundancy, secure data centers, end-to-end encryption, and rigorous auditing protocols. All digital assets in the fund must be held through a qualified custodian or in a regulated exchange-traded product, ensuring transparency, security, and compliance with state and federal standards.
Senator Finchem introduced SB 1373 to strengthen Arizona’s financial independence and modernize how the state manages valuable digital property. With passage through the House Commerce Committee, this legislation is now one step closer to becoming law. SB 1373 reflects a clear vision: Arizona will lead the nation in responsible adoption and stewardship of digital assets, while building a more secure and prosperous future for all Arizonans.