Arizona Senate advances Bill SB 1649 for a digital asset reserve.
The Arizona State Senate has advanced Bill SB 1649, which proposes the establishment of a strategic reserve of digital assets. The fund is to be replenished with confiscated cryptocurrency.
The bill has successfully passed the relevant committees and is preparing for a final vote.
The state treasurer will manage the reserve, with the authority to invest the funds and issue crypto loans to generate income. The primary condition is that these operations must not create additional financial risks for Arizona’s budget.
Assets will be entrusted to qualified custodians, such as banks or trust companies. Funds may also be placed in exchange-traded products approved by the SEC or CFTC.
The reserve will include not only Bitcoin. The bill allows for the storage of XRP, Digibyte, stablecoins, and NFTs, provided they meet minimum market value criteria.
The main obstacle to the initiative remains Arizona Governor Katie Hobbs. She previously vetoed four similar bills, citing cryptocurrencies as too volatile for the state budget.
