The Arizona State Legislature has advanced a bill to create a digital assets strategic reserve fund, which would hold seized or surrendered cryptocurrencies such as bitcoin and XRP.
Management and Investment Oversight
The Arizona State Legislature recently advanced a bill to establish a Digital Assets Strategic Reserve (DASR) fund, notably naming XRP and BTC among the cryptocurrencies slated for inclusion. Passing the Senate Finance Committee with a 4–2 vote, the bill specifies that the reserve will comprise digital assets seized, confiscated, or surrendered to the state.
According to a factsheet from the legislature’s research team, assets would be deposited into the fund via a qualified custodian or an exchange-traded product (ETP). The proposed legislation grants the State Treasurer discretion to invest the total monies deposited and empowers the office to loan out digital assets, provided such transactions do not increase the state’s financial risk profile.
This legislative push follows a significant setback in 2025, when Governor Katie Hobbs vetoed a bill that would have permitted the state treasurer and retirement systems to invest up to 10% of their funds in cryptocurrencies. At the time, Governor Hobbs characterized the asset class as “untested” and argued that using retirement funds for such volatile investments would be irresponsible.
Defining Value and Selection Metrics
To address these concerns, the DASR bill introduces specific metrics for the State Treasurer to evaluate the economic and technical vitality of potential holdings. These criteria include market capitalization, network activity, annual transaction value, and a “network power source” metric designed to measure decentralization and security.
Furthermore, the factsheet defines what qualifies as a cryptocurrency and provides a “fair value score” benchmark. Per the SB 1649 Factsheet:
“Virtual assets and cryptocurrency or native on-chain assets that meet the cryptocurrency fair value score of one percent of the digital gold standard benchmark, including bitcoin, Digibyte, XRP, stablecoins, non-fungible tokens, and any other digital-only assets that confer economic, proprietary, or access rights or powers.”
While the bill now heads to the full Senate, its future remains uncertain. Observers note a high veto risk from the Governor, should the executive branch deem this strategic reserve a step too far beyond the more conservative unclaimed property laws passed in 2025.
FAQ ❓
- What is the DASR fund? It’s a proposed Arizona reserve holding seized or surrendered digital assets like BTC and XRP.
- How will assets be managed? Deposits go through custodians or ETPs, with the State Treasurer allowed to invest or loan them under strict risk limits.
- Why is this bill significant? It follows Governor Hobbs’ 2025 veto on crypto investments, aiming to address volatility concerns with new evaluation metrics.
- What’s next for the bill? It heads to the full Senate, but faces a high veto risk from the Governor’s office.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
A certain Korean CEX is pushing for the reelection of its current CEO, who was previously penalized by regulators due to operational errors
South Korea's second-largest cryptocurrency exchange platform remains committed to supporting CEO Lee Jae-won's reelection, despite the platform facing controversy over a Bitcoin misdisbursement incident and regulatory penalties. Despite major flaws being exposed, the exchange has chosen to maintain operational stability rather than pursue management restructuring.
GateNews1h ago
Strategy Bitcoin holdings have a floating loss of 8.8%, approximately $5.08 billion
On March 22nd, Bitcoin's price declined 2.36% to $69,023, with Strategy's Bitcoin position experiencing an unrealized loss of 8.8%, approximately $5.08 billion. Previously, the price had briefly surpassed $76,000, during which the position was temporarily profitable. As of March 15th, Strategy held 761,068 BTC with a total cost basis of approximately $57.61 billion.
GateNews2h ago
Fractal model predicts Bitcoin will hit bottom in October 2026
Bitcoin shows positive recovery signals, improving market sentiment after a long phase of volatility. However, experts believe the current uptrend is short-term, with deeper correction risks ahead. According to Crypto Rover's fractal model, Bitcoin's price follows a four-year cycle influenced by halving events. The current cycle likely peaked in late 2025, with further declines expected before a potential bottom around 2026. Short-term price fluctuations can mislead investors, emphasizing the importance of understanding these cycles for long-term trends.
TapChiBitcoin2h ago
Bitcoin Mining Cost Rises to $88,000, Miners Lose Approximately $19,000 Per Coin
Rising energy prices and tensions in the Middle East have increased Bitcoin mining costs, with current production costs around $88,000 per BTC. Miners are losing nearly $19,000 per coin, representing an overall loss of 21%. Network mining difficulty has decreased by 7.8%, hashrate has declined, and the market may face selling pressure.
GateNews3h ago
