Arizona Advances Digital Assets Reserve Fund Legislation

Arizona is taking steps to formalize its handling of digital assets by introducing Senate Bill 1649. The legislation would create a Digital Assets Strategic Reserve Fund, allowing the state to retain seized cryptocurrencies instead of auctioning them.

The proposal names XRP, Bitcoin, and Monero as eligible assets under defined standards. To qualify for the reserve, assets must demonstrate adoption rates, annual transaction volume, and ecosystem development.

Lawmakers structured the bill to guide fund management practices, requiring that investment actions do not increase financial risk. The State Treasurer would oversee storage and management of the holdings.