The Arizona Senate Finance Committee has voted 4-2 to advance Senate Bill 1649 (SB1649), which aims to create a Digital Assets Strategic Reserve Fund and explicitly names XRP as a qualifying digital asset for inclusion. This marks a significant step toward formal state-level recognition of cryptocurrency within government financial structures.
The bill, which now moves to the Rules Committee for further review, proposes that the reserve fund consist of legislative appropriations and digital assets seized, confiscated, or surrendered to the state. The state treasurer would be responsible for managing the fund, with authority to securely hold assets like XRP through qualified custodians or regulated exchange-traded products. The treasurer would also have the ability to invest the fund and loan digital assets to generate returns, provided such actions do not create significant financial risk.
Beyond XRP, the legislation also covers other major digital assets including Bitcoin (BTC), stablecoins, and non-fungible tokens (NFTs). It establishes clear definitions for "digital assets" and guidelines for determining their fair market value based on factors like market capitalization, transaction volume, and network security.
If ultimately passed into law, Arizona would become the first U.S. state to officially recognize and manage XRP within a state reserve fund. This move is seen as potentially setting a national precedent, encouraging other states to explore similar initiatives and further integrating cryptocurrencies into official government financial frameworks. The progress comes after XRP's legal clarity following its prolonged battle with the U.S. Securities and Exchange Commission (SEC).
