The Arizona State Legislature has taken a significant step toward formalizing cryptocurrency holdings at the state level. A committee has approved a bill that would establish a Digital Assets Strategic Reserve Fund and explicitly include XRP as an eligible asset. The measure passed a key committee vote 4–2 and now advances to the full legislature for further consideration.
If enacted, the bill would allow—but not require—the state treasurer to hold XRP alongside other digital assets like Bitcoin (BTC) and DigiByte (DGB) within a state-managed reserve. The fund would consist of digital assets appropriated by the legislature or those seized and surrendered to the state. The legislation grants the treasurer authority to invest these funds and, under conditions that do not increase financial risk, even lend digital assets to generate additional returns. Lawmakers have stated the plan is not expected to impact Arizona's General Fund.
The bill's fact sheet outlines broad eligibility, naming "virtual currency, virtual coins and cryptocurrency or native on-chain assets" that meet specific market-value and liquidity benchmarks. It also introduces a framework for assessing "cryptocurrency fair value" based on fundamentals like market capitalization, network activity, and decentralization. XRP's specific inclusion is seen as a shift in policy recognition, evaluating the token on its utility and network characteristics rather than purely as a speculative asset.
Market reaction has been measured, with XRP trading around $1.39 at the time of the news, holding a market capitalization of approximately $85 billion. The development reflects a growing trend of state-level engagement with crypto reserve frameworks, moving beyond Bitcoin-focused proposals. While the bill must clear additional legislative hurdles, its progress signals a widening acceptance of digital assets within public finance infrastructure.
