The Arizona State Legislature has advanced a bill to create a Digital Assets Strategic Reserve (DASR) fund, with a Senate Finance Committee vote of 4–2 in favor. The fund would hold cryptocurrencies seized, confiscated, or surrendered to the state, explicitly naming bitcoin, XRP, and Digibyte, alongside stablecoins and non-fungible tokens (NFTs).
Management and Investment Authority
According to a legislative factsheet, assets would be deposited through a qualified custodian or an exchange-traded product (ETP). The State Treasurer gains discretion to invest the total deposits and may loan out digital assets, provided such actions do not elevate the state's financial risk profile.
From Veto to Renewed Push
The bill follows Governor Katie Hobbs' 2025 veto of a prior measure that would have allowed the treasurer and retirement systems to invest up to 10% in cryptocurrencies. Hobbs then called the asset class "untested" and argued retirement funds should not face such volatility. The new proposal introduces concrete evaluation metrics to address those concerns.
Asset Selection and Fair Value Score
The legislation mandates the State Treasurer to assess potential holdings based on market capitalization, network activity, annual transaction value, and a "network power source" metric measuring decentralization and security. Furthermore, a "fair value score" benchmark is set: any virtual asset reaching 1% of the digital gold standard qualifies. Mentioned assets include bitcoin, Digibyte, XRP, stablecoins, NFTs, and other digital-only assets conferring economic or access rights.
Uncertain Path Ahead
After clearing the committee, the bill heads to the full Senate. However, observers flag a high risk of veto from the Governor, should the executive branch view this strategic reserve as exceeding the more conservative unclaimed property laws enacted in 2025.