Arizona House Approves Bitcoin Reserve Bill Using Seized Crypto

Arizona House Clears Bitcoin Reserve Bill Funded by Seized Crypto
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The bill, which cleared the House with bipartisan support, authorizes Arizona’s treasury to hold and manage Bitcoin and other cryptocurrencies obtained through law enforcement seizures. Rather than liquidating these assets for cash, the state would retain them as part of a dedicated reserve, aiming to benefit from potential long-term appreciation.

Arizona’s initiative comes as the United States federal government has also taken steps toward establishing a Strategic Bitcoin Reserve. In March 2025 , a presidential executive order created a national reserve for Bitcoin and other digital assets , emphasizing the importance of harnessing digital assets for national prosperity and financial security. The federal policy prohibits the sale of Bitcoin held in the reserve, designating it as a long-term store of value.

This trend reflects a broader shift, with some policymakers and experts suggesting that cryptocurrency reserves could reduce national debt, free up dollars for other uses, and position the U.S. as a leader in the evolving digital economy.

While the potential for financial gains is significant, holding crypto-assets also introduces volatility and regulatory challenges. The European Central Bank and other financial authorities have highlighted the risks associated with unbacked digital assets, including price swings and uncertain legal frameworks.

Arizona’s Bitcoin reserve bill now heads to the state Senate for further debate. If enacted, it would set a precedent for other states considering similar measures, and further cement the role of cryptocurrencies in public finance at both state and national levels.

Texas has made history by becoming the first US state to establish its own independently managed Bitcoin reserve, investing $10 million directly into the cryptocurrency. This bold move signifies a shift in how public funds might be managed in the future, positioning Texas as a leader in integrating digital assets into public finance. 

 

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