- Arizona’s Senate Finance Committee approved SB1649 in a 4-2 vote.
- The bill allows the creation of a state-run Digital Assets Strategic Reserve Fund.
- The reserve would hold seized or surrendered Bitcoin, XRP, DigiByte, and other crypto.
Arizona’s Senate Finance Committee approved Senate Bill 1649 (SB1649) on February 16, 2026, in a 4-2 vote. The bill now moves to the Senate Rules Committee. It still needs full Senate approval, House passage, and the governor’s signature to become law. Republican Senator Mark Finchem introduced SB1649 on February 3.
A State-Run Crypto Reserve
The proposal creates a state-run Digital Assets Strategic Reserve Fund managed by the Arizona state treasurer.
The fund would hold digital assets seized, confiscated, or surrendered to the state, along with money allocated by lawmakers. The bill lists Bitcoin, XRP, and DigiByte as eligible assets.
It also allows stablecoins, non-fungible tokens, and other digital assets that provide economic or access rights. The proposal focuses on using assets already under state control rather than direct market purchases. Lawmakers aim to build reserves without increasing taxpayer exposure.
Custody, Investment Rules, and Asset Eligibility
SB1649 requires the state treasurer to store digital assets through secure custody systems. Storage must use a qualified custodian or exchange-traded products issued by investment companies registered in Arizona.
The bill allows the treasurer to invest reserve funds and loan digital assets to generate returns. Any lending must not raise financial risk for the state. The Senate fact sheet states the measure has no expected fiscal impact on Arizona’s general fund.
The Arizona State Board of Investment would continue oversight under existing constitutional rules. The bill sets strict entry rules for digital assets. Eligibility depends on a “cryptocurrency fair value score.”
This score measures market capitalization, network activity, annual transaction value, development ecosystem strength, and decentralization and security, called the “network power source.”
Assets must reach at least 1% of a defined “digital gold standard benchmark” to qualify. The bill also defines terms such as cryptographic private key and exchange-traded product to support custody and investment rules.
State-Level Crypto Efforts
New Hampshire passed HB 302 in May 2025, allowing up to 5% of state funds to be invested in crypto exchange-traded funds and high market cap digital assets alongside precious metals.
Texas enacted SB 21 in June 2025. The law created a Texas Strategic Bitcoin Reserve managed by the state comptroller. Texas later acquired Bitcoin through exchange-traded funds under that framework.
Arizona itself passed HB 2749 in 2025. That law created a Bitcoin and Digital Assets Reserve Fund focused on unclaimed property and required staking rewards and airdrops to remain in digital form.
SB1649 expands those efforts by adding a broader reserve structure and stricter eligibility rules.
Related: U.S. House Passes $1.2T Funding Bill as Bitcoin Drops to $73K During Vote Uncertainty
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