The Arizona State Senate passed the bill coded SB1649 through the Senate Rules Committee, bringing the bill one step closer to a Senate vote. This bill provides for the creation of a Digital Asset Strategic Reserve Fund, which aims to ensure the state government’s holding and control of certain digital assets.
What Does the Bill Bring?
The proposed law regulates the management of the reserve fund by the Arizona Department of Treasury. The target of the fund is; To preserve digital assets seized by the state, deposited in the state treasury, or voluntarily surrendered. In addition, amounts specifically allocated by the state legislature for this fund will also be included in the fund. Unlike previous plans for direct Bitcoin purchase, this approach highlights the systematic management of assets currently held by the state.
Covered Assets
According to the bill, Bitcoin, XRP, DigiByte, various stablecoins and non-fungible tokens known as NFTs are among the digital assets that can be included in the fund. An evaluation method called “cryptocurrency fair value score” is also being introduced to create criteria for which assets to reserve. This scoring system will guide the selection of assets by taking into account factors such as market capitalization, network efficiency and decentralization.
Investment and Management Authority
According to the provisions of the bill, the Minister of Treasury to whom the fund is affiliated will have the right to evaluate the reserved digital assets through investment or lending. However, the requirement that the transactions here do not bring additional financial risk to the state stands out. This will enable the state to actively manage digital assets rather than just passively holding them.
This structure envisaged in the draft provides a framework for the transparent and controlled evaluation of assets.
It was stated that SB1649 also attracted attention as it was one of the first legal efforts to regulate the evaluation and management of digital assets within the state treasury.
Parliament Process and Next Stages
The bill passed the Senate Finance Committee on February 16, 2026, with four votes of approval and two votes of disapproval. It is expected to be voted on by the full Senate in the coming period. The SB1025 bill, introduced in 2025 and envisaging up to ten percent of treasury assets being invested in Bitcoin, was vetoed by Governor Katie Hobbs the previous year. The current SB1649 stands out with a narrower scope and a framework that focuses on the management of assets.
After the general vote of the Senate, the bill will be sent to the Arizona House of Representatives. If it is accepted here, it will finally be submitted to the Governor for approval.
If the bill comes into force, Arizona will be on its way to becoming one of the first states in the United States to have a legal framework for digital asset reserves.
