Arizona lawmakers are considering a bill that would allow the state to store digital assets rather than sell them, and XRP is on the list.
Under the proposal, these assets would be under the control of the state Treasurer, with the possibility of additional returns for the state through staking, airdrops, or limited lending if they pose no financial risk.
What the Fund holds
SB1649 creates the Digital Asset Strategic Reserve Fund, which consists of digital assets held, forfeited, or surrendered by the State of Arizona.
The bill text also states that treasurers will be able to deposit state-held digital assets and directly manage their funds through secure custody solutions and approved exchange-traded products.
The law broadly defines “digital assets” to include Bitcoin, XRP, stablecoins, non-fungible tokens, Dash, Internet Computers, Ravencoin, Chia, eCash, Monero, and other digital-only assets that meet the bill's fair value test.
Its fair value tests are built around hiring, annual transactions, annual transaction value, and development activity. In layman's terms, the bill seeks to classify assets based on market availability and technical capabilities before treating them as reserves.
Although the language is broad, it is not an open-ended invitation to buy something. First, determine the screening criteria.
bill that keeps moving
The bill has already passed the House Rules Committee and is headed to the House for a vote. The committee passed it 8-0 on March 30, after earlier action in the Senate cleared it from the floor, according to tracking from the Arizona Legislature. That means the bill is still alive, but not yet law.
The steps in the House of Commons are important in moving the proposal closer to finalization. The bill would give the Secretary of the Treasury the authority to administer the fund, and would also allow digital assets reported as abandoned property to be turned over intact to the state or its custodian.
If these assets are left unclaimed for a long period of time, staking rewards and airdrops can be transferred to reserves.
Why XRP is attracting attention
XRP has received particular attention because it is named directly in the bill, rather than implied through a broad crypto category. The same section that lists Bitcoin also lists XRP along with several other assets that may qualify under the reserve framework.
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