Arizona lawmakers advance digital assets reserve fund bill

A proposal to establish a digital assets reserve fund in Arizona is gaining momentum in the state's legislature. The bill, which was introduced by Senator Mark Finchem, aims to create a fund that would hold, invest, and loan seized cryptocurrency.

The measure has been advanced by the Senate Finance Committee and has received backing from the Senate Republican Caucus. However, it faces opposition from Governor Katie Hobbs, who vetoed a similar proposal last year.

Under the bill, the state treasurer would be responsible for administering the fund and investing its total holdings to generate returns. The assets would be held through a qualified custodian, such as a bank or trust company.