Arizona’s Digital Property Strategic Reserve Fund proposal, Senate Invoice 1649 (SB1649), cleared the state Senate Finance Committee on Feb. 16 in a 4–2 vote.
The invoice, sponsored by Sen. Mark Finchem, now heads to the Senate Guidelines Committee.
What the invoice would create
In line with LegiScan, SB1649 would set up a Digital Property Strategic Reserve Fund managed by the Arizona State Treasurer.
The fund could be capitalized with legislative appropriations and digital belongings which might be seized, confiscated, or surrendered to the state.
Custody and funding powers
The proposal directs the treasurer to retailer belongings utilizing safe custody options.
It additionally permits custody through a professional custodian or exchange-traded merchandise issued by an funding firm registered in Arizona.
SB1649 would allow the treasurer to take a position cash deposited into the reserve.
It additionally permits the state to mortgage digital belongings to generate returns, supplied the mortgage doesn’t enhance monetary danger.
Eligibility guidelines and included belongings
SB1649 defines eligible digital belongings broadly and units a threshold primarily based on a “cryptocurrency truthful worth rating,” a weighted measure that features market capitalization and community exercise.
Different elements listed embody annual transaction worth, improvement ecosystems, and a “community energy supply” tied to decentralization and safety.
The invoice lists bitcoin, XRP, DigiByte, stablecoins, and non-fungible tokens as eligible classes.
No shopping for
The invoice emphasizes seized or surrendered belongings relatively than direct state purchases.
It additionally differs from Arizona’s 2025 HB 2749, which created a reserve fund tied to unclaimed or deserted property.