- The Arizona Senate Finance Committee authorized SB1649 on a 4-2 vote.
- The invoice authorizes the creation of a nationwide digital asset strategic reserve fund.
- This reserve shops seized or surrendered Bitcoin, XRP, DigiByte, and different cryptocurrencies.
On February 16, 2026, the Arizona Senate Finance Committee authorized Senate Invoice 1649 (SB1649) by a vote of 4-2. The invoice now goes to the Senate Guidelines Committee. To develop into regulation, the invoice have to be totally authorized by the Senate, handed by the Home of Representatives, and signed by the governor. Republican Sen. Mark Finchem launched SB1649 on February 3.
State-owned digital forex reserve
The proposal would create a state-run Digital Asset Strategic Reserve Fund to be administered by the Arizona State Treasurer.
The fund will maintain digital belongings which were seized, confiscated, or turned over to the state, together with funds allotted by members of Congress. The invoice lists Bitcoin, XRP, and DigiByte as eligible belongings.
Stablecoins, non-fungible tokens, and different digital belongings that present financial rights or entry rights are additionally permitted. The proposal focuses on the usage of belongings already beneath state management, quite than direct market purchases. Lawmakers goal to extend the reserve fund with out rising the burden on taxpayers.
Custody, funding guidelines and asset eligibility
SB1649 requires the state treasurer to retailer digital belongings via a safe storage system. Custody have to be with a professional custodian or with a publicly traded product issued by an funding firm registered in Arizona.
The invoice would enable treasurers to speculate their reserves and generate revenue by lending digital belongings. No mortgage ought to enhance the monetary danger of the nation. The Senate reality sheet states the measure shouldn’t be anticipated to have a fiscal influence on Arizona’s basic fund.
The Arizona Funding Fee will proceed its oversight beneath present constitutional provisions. The invoice units out strict entry guidelines for digital belongings. Eligibility is set by the “digital forex truthful worth rating.”
This rating measures market capitalization, community exercise, annual transaction worth, power of the event ecosystem, and decentralization and safety, that are known as the “energy sources of the community.”
To qualify, belongings should attain at the very least 1% of an outlined “Digital Gold Customary Benchmark.” The invoice additionally defines phrases comparable to cryptographic non-public keys and exchange-traded merchandise to assist custody and funding guidelines.
Nationwide Encryption Initiatives
New Hampshire handed HB 302 in Might 2025, permitting as much as 5% of state funds to be invested in crypto trade traded funds and excessive market capitalization digital belongings, together with valuable metals.
Texas enacted SB 21 in June 2025. This laws created the Texas Strategic Bitcoin Reserve, which is managed by the state comptroller. Texas subsequently acquired Bitcoin via an exchange-traded fund beneath that framework.
Arizona itself handed HB 2749 in 2025. The regulation created a Bitcoin and Digital Asset Reserve Fund centered on unclaimed property and mandated that staking rewards and airdrops be maintained in digital kind.
SB1649 expands on these efforts by including a broader reserve construction and stricter eligibility guidelines.
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