Arizona lawmakers have included XRP in the digital reserve bill

Proposals in document SB1649

Arizona lawmakers have taken a significant step toward recognizing cryptocurrency as a strategic state asset, passing Senate Bill 1649 (SB1649) in the Senate Finance Committee by a 4-2 vote.

This bill establishes a Digital Asset Strategic Reserve Fund under the supervision of the Arizona State Treasury, explicitly listing XRP alongside Bitcoin (BTC), DigiByte, stablecoins, non-fungible tokens (NFTs), and other eligible digital assets as eligible held assets.

Sponsored by Republican senators (possibly referring to figures like Wendy Rogers or John Finchem in related articles), the bill focuses on regulating digital assets that are seized, confiscated, voluntarily surrendered, or used by the state – rather than purchased with taxpayers' money.

The fund will utilize secure custody solutions (e.g., qualified custodians) and may allow investment, lending, or other management under defined risk parameters, with the aim of enhancing transparency, market stability, and maintaining long-term value for seized cryptocurrencies.

Determine strategic reserves

A state-level digital reserve fund would allow the Arizona Treasury to allocate a portion of public funds to approved digital assets, similar to traditional holdings in bonds or cash equivalents. The inclusion of XRP is particularly significant as it reflects the recognition of blockchain infrastructure assets, rather than simply scarce commodities.

Unlike Bitcoin, which is often considered digital gold, XRP has long been positioned as a liquidity bridge asset designed to facilitate cross-border payments and payment efficiency. This signals a policy mindset that evaluates cryptocurrencies through the lens of utility and infrastructure rather than mere speculation.

Legal and institutional context

This proposal comes amid improving legal clarity surrounding XRP and increasing institutional participation in the digital asset market. As legal uncertainty diminishes, state policymakers appear increasingly comfortable exploring structured exposure frameworks. Arizona has long leaned toward supporting innovation in fintech and blockchain policy, and this bill aligns with that direction.

However, incorporating digital assets into public reserves is not a symbolic gesture—it requires institutional-level custody, accounting standards, cybersecurity safeguards, and stringent governance controls.

Our review

If Arizona proceeds with this, it could influence other U.S. states to explore diversifying their digital reserves. Competition among states to attract investment in blockchain technology and position themselves as innovation hubs could spur similar legislative efforts.

Whether or not the bill passes, this development reflects a structural shift: digital assets are increasingly being considered within formal public finance policy—not just as speculative instruments, but as components of modern financial architecture.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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