- The Arizona Senate advanced a bill creating a state-managed Digital Assets Strategic Reserve Fund.
- The fund would include seized digital assets and legislatively appropriated state monies.
- Eligible assets include Bitcoin, XRP, DigiByte, stablecoins, NFTs, and other digital assets.
Arizona is moving deeper into the digital asset space. Lawmakers in the Arizona State Senate advanced Senate Bill 1649 in a 4–2 committee vote, pushing forward a proposal to establish a Digital Assets Strategic Reserve Fund. The measure now heads to the next stage of legislative review, marking another step in the state’s evolving crypto policy framework.
The Fact Sheet for S.B. 1649 outlines the creation of a state-managed fund that would hold and potentially invest in digital assets under the oversight of the Arizona State Treasurer.
What the Bill Proposes
Under the legislation, the Digital Assets Strategic Reserve Fund would be administered by the State Treasurer and consist of:
• Monies appropriated by the Legislature
• Digital assets seized, confiscated, or surrendered to the state
The Treasurer would be authorized to invest funds held in the reserve during a fiscal year. The proposal also permits the lending of digital assets from the fund to generate additional returns, provided such loans do not increase financial risk to the state.
The bill states there is no anticipated fiscal impact on the state’s General Fund.
What Assets Would Qualify?
The proposal defines eligible digital assets broadly. According to the bill language, qualifying holdings could include:
• Bitcoin (BTC)
• DigiByte
• XRP
• Stablecoins
• Non-fungible tokens
• Any other digital-only assets that confer economic, proprietary, or access rights
The bill also introduces a definition of “cryptocurrency fair value,” described as a weighted evaluation of a coin’s economic and technical vitality. Factors may include market capitalization, network activity, transaction volume, developer ecosystem strength, and measures of decentralization and security.
Safeguards and Custody Structure
The legislation requires that digital assets seized or surrendered to the state be deposited through secure custody solutions handled by a qualified custodian. Alternatively, they may be held in the form of an exchange-traded product issued by an investment company registered in Arizona.
Arizona has previously positioned itself as a state open to blockchain innovation. The advancement of S.B. 1649 signals continued willingness among some lawmakers to integrate digital assets into public finance mechanisms.
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Source: https://coinedition.com/arizona-s-b-1649-fact-sheet-highlights-crypto-plan/
