Arizona’s Digital Assets Strategic Reserve Fund proposal, Senate Bill 1649 (SB1649), cleared the state Senate Finance Committee on Feb. 16 in a 4–2 vote.
The bill, sponsored by Sen. Mark Finchem, now heads to the Senate Rules Committee.
What the bill would create
According to LegiScan, SB1649 would establish a Digital Assets Strategic Reserve Fund managed by the Arizona State Treasurer.
The fund would be capitalized with legislative appropriations and digital assets that are seized, confiscated, or surrendered to the state.
Custody and investment powers
The proposal directs the treasurer to store assets using secure custody solutions.
It also allows custody via a qualified custodian or exchange-traded products issued by an investment company registered in Arizona.
SB1649 would permit the treasurer to invest money deposited into the reserve.
It also allows the state to loan digital assets to generate returns, provided the loan does not increase financial risk.
Eligibility rules and included assets
SB1649 defines eligible digital assets broadly and sets a threshold based on a “cryptocurrency fair value score,” a weighted measure that includes market capitalization and network activity.
Other factors listed include annual transaction value, development ecosystems, and a “network power source” tied to decentralization and security.
The bill lists bitcoin, XRP, DigiByte, stablecoins, and non-fungible tokens as eligible categories.
No buying
The bill emphasizes seized or surrendered assets rather than direct state purchases.
It also differs from Arizona’s 2025 HB 2749, which created a reserve fund tied to unclaimed or abandoned property.
