Arizona is moving one step closer to formally integrating digital assets into its state financial framework. The Arizona Senate Finance Committee has approved Senate Bill 1649 (SB1649) in a 4-2 vote, with one member present but not voting. The bill proposes the creation of a state-managed Digital Assets Strategic Reserve Fund that would include Bitcoin, XRP, and other qualifying digital assets.
Introduced by Republican Senator Mark Finchem earlier this month, the legislation would authorize the state treasurer to oversee and manage the reserve. The fund would consist of legislative appropriations as well as digital assets that are seized, confiscated, or voluntarily surrendered to the state.
The bill specifically mentions Bitcoin, XRP, and DigiByte in its benchmark list but expands eligibility to include stablecoins, non-fungible tokens (NFTs), and other digital assets that provide economic or proprietary rights. However, not every token would qualify automatically.
To be eligible, assets must meet a defined “cryptocurrency fair value score.” This metric evaluates factors such as market capitalization, transaction activity, network utility, development ecosystem strength, and decentralization. Only assets reaching at least 1% of a “digital gold standard benchmark” would qualify for inclusion.
The legislation also allows the treasurer to invest reserve funds or loan out digital assets, but only under conditions that do not increase financial risk to the state. The bill states there would be no projected fiscal impact on Arizona’s general fund.
If passed into law, Arizona would join a growing list of U.S. states experimenting with digital asset reserves. New Hampshire passed similar legislation in 2025, allowing limited crypto ETF investments. Texas also enacted a Strategic Bitcoin Reserve framework managed by the state comptroller.
Arizona itself previously approved a separate digital asset reserve bill focused on unclaimed property. That concept is expanded into a more comprehensive state-level strategic reserve by SB1649.
Before possibly going to a full Senate vote, the bill now goes to the Senate Rules Committee.
If approved by both chambers of the legislature and signed by the governor, Arizona could become one of the states with the most active digital asset reserves.
Even as federal authorities continue to debate a national crypto strategy, the overall trend shows an increase in state-level innovation.
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