SB 1042 Arizona Senate · 57th Legislature - Second Regular Session

public monies; investment; virtual currency

SB 1042 allows Arizona's state treasurer and retirement systems to invest up to 10% of public funds in virtual currency (like Bitcoin). It creates a framework for storing such holdings in a secure, segregated account within a potential federal "strategic bitcoin reserve" if established. The bill defines key terms, including "public fund" (state treasurer or retirement systems) and "virtual currency" as a digital medium of exchange. This directly changes investment rules for state pension funds and treasury accounts, permitting new digital asset holdings within a specific percentage limit.

Bill status failed 3 of 5 stages cleared

Introduction

Dec 2025

Committee Review

Mar 2026

Senate Passage

Feb 2026

House Failed

Jun 2026

Governor

Introduced Dec 19, 2025 Last action Jun 11, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → Senate Engrossed Version (02/25/2026) · 4 edits · Feb 25, 2026

MODERATE

The bill was renumbered and reorganized from an introduced version to a Senate engrossed version, incorporating significant substantive changes to its definitions and scope. The most critical addition is a new definition for 'stablecoin,' which explicitly includes digital assets like USDC and USDT under the law. Additionally, the definition of 'virtual currency' was updated to clarify that it includes stablecoins but excludes legal tender.

Scope change

The bill's scope was expanded to explicitly cover stablecoins as a form of virtual currency eligible for investment, while clarifying that legal tender is excluded.

DEFINITION

Added a new definition for 'stablecoin,' defining it as a payment stablecoin compliant with the GENIUS Act of 2025 and federal laws.

Modified the definition of 'virtual currency' to explicitly state that it includes stablecoins and excludes legal tender issued by the US or foreign governments.

TECHNICAL

Updated the bill title from 'Arizona Strategic Bitcoin Reserve Act' to 'Arizona Strategic Digital Asset Reserve Act' to reflect the broader inclusion of digital assets beyond just Bitcoin.

Changed the article title from 'Strategic Bitcoin Reserve' to 'Arizona Strategic Digital Asset Reserve' to align with the expanded scope.

Floor votes · House Jun 11, 2026

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jun 11, 2026

Vote failed

House Vote: fail (26-30-3)

house

Apr 14, 2026

Lower · Passed

lower

Mar 25, 2026

Lower · Passed

lower

Feb 25, 2026

Upper · Passed

PASSED

upper

Feb 25, 2026

Upper · Passed

DPA

upper

Jan 26, 2026

Upper · Passed

upper

1 primary · 0 co-sponsors