Arizona’s Senate Bill 1649 (SB1649) has cleared the Senate Rules Committee and has been placed on the consent calendar, moving it closer to a full Senate vote.
The proposal would establish a state-managed Digital Assets Strategic Reserve Fund designed to hold and oversee certain digital assets.
The advancement signals continued legislative interest in formalizing how the state handles crypto-related holdings.
SB1649 proposes the creation of a Digital Assets Strategic Reserve Fund administered by the State Treasurer.
The reserve would consist primarily of digital assets that are seized, forfeited, or voluntarily surrendered to the state. It would also include any funds specifically appropriated by the legislature for inclusion in the reserve.
Unlike prior proposals that focused on direct treasury allocation into Bitcoin, this framework centers on structured management of assets already in state possession.
The bill explicitly names Bitcoin (BTC), XRP, DigiByte, stablecoins, and non-fungible tokens (NFTs) as eligible assets for inclusion.
It also introduces a valuation framework known as a “cryptocurrency fair value score.” This metric would assess assets based on factors such as market capitalization, network activity, and decentralization. The scoring mechanism is intended to guide decisions on which digital assets meet the reserve’s criteria.
Under SB1649, the State Treasurer would be permitted to invest and lend digital assets held in the reserve in order to generate returns. However, the bill specifies that these activities must not increase financial risk to the state.
This structure effectively allows the state to actively manage digital assets rather than simply hold them passively.
The bill previously passed the Senate Finance Committee on February 16, 2026, with a 4-2 vote. It now moves toward a full Senate floor vote.
In contrast to earlier 2025 proposals, such as SB1025 — which sought to allocate up to 10% of the state treasury directly into Bitcoin and was later vetoed by Governor Katie Hobbs, SB1649 adopts a narrower approach focused on custodial and management practices.
If approved by the Senate, the bill must then pass the Arizona House of Representatives before reaching the Governor’s desk for final consideration.
The outcome will determine whether Arizona becomes one of the first U.S. states to formalize a structured digital asset reserve framework.
