Arizona crypto reserve proposition gained main help yesterday, February 16, after Senate Bill 1649 (SB1649) cleared the Senate Finance Committee. The proposal, launched by Sen. Mark Finchem, handed in a 4-2 vote and now heads to the Senate Rules Committee. The invoice would create a Digital Assets Strategic Reserve Fund utilizing seized and confiscated Bitcoin, XRP, and different eligible crypto belongings.
Arizona Crypto Reserve Moves Forward With Treasurer-Led Reserve Structure
As per LegiScan data, SB1649 would set up the Digital Assets Strategic Reserve Fund, managed by the Arizona State Treasurer. The fund would come with cash appropriated by the legislature and digital belongings seized, confiscated, or surrendered to the state.
The invoice additionally directs the treasurer to retailer these belongings by means of safe custody options. It permits storage by means of a professional custodian or exchange-traded merchandise issued by an funding firm registered in Arizona.
Notably, the treasurer would even have the authority to take a position cash deposited into the crypto reserve. In addition, the invoice permits the state to mortgage digital belongings to generate returns, so long as the mortgage doesn’t improve monetary danger.
The Senate truth sheet additionally notes no anticipated fiscal influence to Arizona’s General Fund. Meanwhile, the Arizona State Board of Investment would proceed reviewing funding actions underneath present state constitutional guidelines.
As the invoice advances to create the crypto reserve, federal developments may nonetheless affect the broader digital asset coverage sector. This consists of reviews that the White House could maintain a 3rd assembly this week with crypto and banking leaders.
Eligible Digital Assets Include Bitcoin, XRP, DigiByte, and stablecoins
SB1649 consists of particular eligibility guidelines for what could enter the Arizona crypto reserve. The invoice defines digital belongings broadly, together with digital forex, digital cash, and cryptocurrency or native on-chain belongings.
However, it additionally units a threshold requirement utilizing a “cryptocurrency fair value score.” The invoice defines this rating as a weighted analysis of financial and technical vitality, utilizing metrics resembling market capitalization and community exercise.
Other components embrace annual transaction worth, growth ecosystems, and a “network power source” measure tied to decentralization and safety. Assets should attain no less than 1% of an outlined “digital gold standard benchmark.”
The invoice lists Bitcoin, XRP, DigiByte, stablecoins, and non-fungible tokens as included digital belongings. It additionally covers different digital-only belongings that present financial, proprietary, or entry rights. Additionally, SB1649 defines key phrases resembling cryptographic non-public key and exchange-traded product, which help custody and funding guidelines.
Bitcoin and XRP Prices Slide as Arizona Bill Advances
As Arizona lawmakers contemplate the Arizona crypto reserve framework, the digital belongings within the invoice have declined in current weeks. Bitcoin value right this moment is at $67,035.93, down 1.84% previously 24 hours and 29.43% over the previous month. Meanwhile, XRP traded at $1.44, down 3.48% previously day and 29.22% previously month.
It is value noting that SB1649 focuses on seized or surrendered belongings moderately than direct state purchases. The invoice additionally differs from Arizona’s earlier 2025 regulation, HB 2749, which created a reserve fund tied to unclaimed or deserted property. The invoice’s subsequent step now’s with the Senate Rules Committee, following its 4-2-1-0 vote consequence within the Finance Committee.
