Arizona Advances Proposal to Hold Digital Assets in Strategic Reserve Fund

A proposal to establish a Digital Assets Strategic Reserve Fund in Arizona has cleared a key committee vote by 4-2. The legislation would enable the state treasurer to manage the fund, which would consist of digital assets seized or surrendered to the state, as well as funds appropriated by lawmakers.

The bill outlines broad criteria for what qualifies as a digital asset under the reserve framework, including Bitcoin, DigiByte, XRP, stablecoins, and non-fungible tokens. It also introduces a framework for assessing cryptocurrency fair value, which would take into account market capitalization, network activity, and decentralization.

While the legislation still faces additional debate and votes before it can become law, its advancement reflects a broader shift in how digital assets are discussed at the state level. Policymakers are exploring digital assets as part of broader treasury and fiscal management strategies, rather than solely focusing on enforcement or compliance questions.