Arizona Considers Digital Assets Reserve Fund Legislation

A new development in Arizona's legislative process may have significant implications for the crypto market. The State of Arizona is considering a bill that would establish a digital assets reserve fund, allowing the state to hold cryptocurrencies as part of its managed reserves.

The proposed legislation, Senate Bill 1649, would amend the Arizona Revised Statutes to include a provision for a 'digital assets strategic reserve fund.' This fund would be managed by the State Treasurer, who would oversee the custody and management of any digital assets acquired under this provision.

While the bill does not specifically mention XRP, its proponents argue that cryptocurrencies like XRP have the necessary speed, liquidity, and scalability to handle institutional-scale transfers and settlements. If passed, the bill could position Arizona as a competitive jurisdiction for financial technology development.