The Arizona State Senate has advanced a bill, SB 1649, proposing the establishment of a strategic reserve for digital assets. The fund is expected to be replenished with confiscated cryptocurrency.
The bill has successfully passed through relevant committees and is now preparing for a final vote.
The state treasurer will manage the reserve, gaining the authority to invest funds and issue crypto loans to generate income. A key condition is that these operations must not pose additional financial risks to Arizona's budget.
Qualified custodians, such as banks or trust companies, will be responsible for holding the assets. The bill also allows for investments in exchange-traded products approved by the SEC or CFTC.
The reserve will include more than just Bitcoin. The legislation permits the storage of XRP, Digibyte, stablecoins, and NFTs, provided they meet minimum market value criteria.
The main obstacle for this initiative remains Arizona Governor Katie Hobbs, who previously vetoed four similar bills. Hobbs has described cryptocurrencies as too volatile for the state budget.
The promotion of the bill coincides with a decline in the crypto market. At the time of writing, Bitcoin is trading below $64,000, having lost 4.3% in a day.
It is worth noting that in June 2025, Arizona passed bill HB 2324 to create a reserve fund for confiscated crypto assets.