Key Highlights
- SB1649 cleared the Senate Finance Committee with a 4–2 vote and is now positioned for Rules Committee review.
- The proposal would create a Digital Assets Strategic Reserve Fund administered by the state treasurer and seeded with seized/confiscated/surrendered digital assets.
- Bitcoin and XRP are explicitly included among eligible assets, alongside other categories referenced in coverage.
Arizona’s Senate Finance Committee approved Senate Bill 1649 (SB1649) on February 16, 2026, in a 4-2 vote, with one member present but not voting.
The bill, introduced on February 3, 2026, by Republican Senator Mark Finchem, aims to create a Digital Assets Strategic Reserve Fund, including Bitcoin and XRP, administered by the state treasurer.
What SB1649 proposes
As described in bill-tracking summaries and coverage, SB1649 would establish a state-managed reserve fund administered by the state treasurer, made up of legislative appropriations plus digital assets that are seized, confiscated, or surrendered to the state.
In that benchmark list, SB1649 mentions Bitcoin, DigiByte, and XRP by name and then expands eligibility further to include stablecoins, non-fungible tokens (NFTs), and even other digital-only assets that confer economic, proprietary, or access rights.
The treasurer would be required to store these digital assets using secure custody from a qualified custodian or through exchange-traded products issued by Arizona-registered investment companies.
The legislation allows the treasurer to invest fund monies and to loan out digital assets, provided any loans do not increase financial risk to the state. It includes no projected fiscal impact on the general fund.
Eligibility for digital assets relies on a defined “cryptocurrency fair value score,” a weighted metric assessing market capitalization, network activity and utility, annual transaction value, development ecosystem, and decentralization/security (referred to as “network power source”). Assets must reach at least 1% of a “digital gold standard benchmark” to qualify.
U.S. states working on strategic crypto reserves
This proposal aligns with a broader trend among U.S. states to integrate cryptocurrency into public finance, often starting with forfeited or unclaimed assets to limit taxpayer exposure.
New Hampshire passed HB 302 in May 2025, authorizing the state treasurer to invest up to 5% of state funds in crypto ETFs or digital assets with high market capitalization, alongside precious metals.
Texas enacted SB 21 in June 2025, creating a Texas Strategic Bitcoin Reserve managed by the comptroller, with provisions for purchasing qualifying digital assets (market cap thresholds) using appropriations or reserve revenues. Texas became one of the first states to acquire Bitcoin via ETFs under this framework.
Arizona itself previously passed HB 2749 in 2025, establishing a Bitcoin and Digital Assets Reserve Fund focused on unclaimed property, requiring retention of airdrops/staking rewards in digital form.
SB1649 now proceeds to the Senate Rules Committee. It requires further Senate passage, House approval, and gubernatorial signature to become law. The pattern reflects increasing state-level experimentation with digital assets amid federal discussions on strategic reserves.
Also Read: US Treasury Chief Pushes Spring Deadline for Crypto Bill Passage
