Arizona Advances Digital Assets Reserve Fund Legislation

The state of Arizona is continuing to take steps towards integrating digital assets into its public finance mechanisms. Senate Bill 1649 has been advanced by the Arizona State Senate, which proposes the creation of a Digital Assets Strategic Reserve Fund. This fund would be managed by the Arizona State Treasurer and consist of monies appropriated by the legislature and digital assets seized or surrendered to the state.

The reserve fund would be authorized to invest its funds during a fiscal year, with the goal of generating returns on behalf of the state. 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.

Eligible digital assets for the reserve fund are defined broadly in the bill and include Bitcoin, DigiByte, XRP, stablecoins, non-fungible tokens, and other digital-only assets that confer economic, proprietary, or access rights. The proposal also introduces a definition of 'cryptocurrency fair value', which is described as a weighted evaluation of a coin's economic and technical vitality.