Arizona lawmakers advanced legislation that would add XRP to the state’s proposed Digital Assets Strategic Reserve Fund, marking one of the clearest moves yet by a US state to formally recognize the token as a potential reserve asset.
The bill cleared a committee vote 4-2 and now moves forward in the Arizona State Legislature. If ultimately enacted, the measure would allow XRP to be included alongside other digital assets in a state-managed reserve overseen by the treasurer.
The development comes as XRP trades at about $1.39, still down more than 5% over the past week. The token’s market capitalization stands near $85 billion.
According to the bill’s fact sheet, the proposed reserve fund would include “virtual currency, virtual coins and cryptocurrency or native on-chain assets” that meet certain market-value and liquidity benchmarks. The language specifically references XRP among eligible assets.
The fund would be administered by the state treasurer and could consist of digital assets appropriated by the legislature or seized and surrendered to the state. The treasurer would also be permitted to invest funds and, under certain conditions, loan digital assets to generate additional returns, provided financial risk to the state is not increased.
Arizona is among a growing number of states exploring digital asset reserve frameworks, reflecting a broader push at the state level to engage with cryptocurrencies in a more formal capacity. While still early in the legislative process, inclusion of XRP signals a widening acceptance beyond Bitcoin-focused proposals seen elsewhere.
For XRP, the move carries symbolic weight. Although it does not immediately translate into state purchases, eligibility within a public reserve structure could bolster the asset’s standing among institutional and policy audiences.
Market reaction has so far been measured. XRP’s modest intraday gain suggests traders are weighing the legislative progress against broader crypto market conditions, which remain volatile.
The bill must pass additional legislative hurdles before reaching the governor’s desk. Amendments could alter the scope of eligible assets or the mechanics of the reserve structure.
If approved, Arizona would join a small but growing cohort of jurisdictions experimenting with state-level digital asset strategies – a development that could influence how other states approach crypto reserves and treasury management.
For now, the proposal underscores the increasing intersection between public finance and digital assets, as lawmakers test frameworks that were largely theoretical just a few years ago.
