Arizona’s Senate Finance Committee narrowly passed SB1649 4-2 on February 16, 2026, opening the door for the state to create a Digital Assets Strategic Reserve Fund. Under the suggested law, Arizona would be able to store seized or surrendered cryptocurrencies, including Bitcoin (BTC), XRP, DigiByte, approved stablecoins, and NFTs in a state-managed treasury reserve. Should it pass both the full Senate and House, the measure will need Governor Katie Hobbs’ signature to become law; currently, it moves to the Senate Rules Committee. Building directly on HB2749, which established reserves from unclaimed digital assets, this project represents Arizona’s most recent push toward institutional crypto adoption.
Under SB1649, the Arizona state treasurer would oversee custody via qualified custodians or registered exchange-traded products (ETPs) inside the state, with the fund populated entirely from forfeited or surrendered assets; no taxpayer cash or direct purchases would be applied. Provided the approach remains risk-neutral and does not affect the state’s general fund, the measure allows lending of these assets for yield creation. Eligibility for inclusion depends on a “cryptocurrency fair value score” assessing market capitalization, transaction volume, and decentralization (at least 1% of Bitcoin’s benchmark), expressly listing BTC, XRP, and DigiByte as qualifying assets.
Particularly for XRP, which traded in the $1.40-$1.44 range following the vote and was seen by proponents as a significant institutional endorsement, the bill has already attracted remarkable market attention. Meanwhile, Bitcoin came under downward pressure among more general crypto and macroeconomic headwinds. Arizona would become states like Texas and New Hampshire in building crypto treasury reserves if enacted, therefore establishing a standard for other U.S. territories to view confiscated digital assets as strategic possessions instead than as immediate liquidation objectives.
