digital assets strategic reserve fund

SB 1373 establishes Arizona's Digital Assets Strategic Reserve Fund to hold digital assets seized by the state (like cryptocurrency from criminal cases) and state appropriations. The fund requires strict custody rules: assets must be stored via secure solutions meeting specific technical standards (e.g., no smartphone access, two geographically separate data centers, regular security audits). The state treasurer may invest no more than 10% of the fund's value annually and can loan assets to generate returns without increasing state financial risk. The bill was passed by the legislature in May 2025 but vetoed by the Governor on May 12, 2025, so it is not currently law.