Arizona Senate Advances Bill to Create Digital Assets Reserve Fund
Arizona lawmakers are advancing Senate Bill 1649 to create a "Digital Assets Strategic Reserve Fund," managed by the state treasurer using cryptocurrency seized or surrendered to the state. The fund would allow the treasurer to hold, invest, and loan digital assets to generate returns, with requirements for custody and risk controls. Eligible assets include Bitcoin, Digibyte, XRP, stablecoins, and NFTs, chosen by a value threshold benchmarked to Bitcoin’s market value. The measure has cleared initial committee votes and heads to a full Senate floor vote, backed by the Senate Republican Caucus. This move continues Arizona's push for crypto integration despite strong opposition from Governor Katie Hobbs, who previously vetoed similar bills citing market volatility and risk concerns. The legislation’s future depends on whether it can withstand possible executive rejection, as previous attempts to establish crypto reserves or allow tax payments in crypto were vetoed. The bill is advancing amid a declining crypto market, with Bitcoin and broader digital asset values down substantially. If passed in the Senate, the proposal proceeds to the House and then to the Governor.
