Senate Engrossed

 

public monies; investment; virtual currency

 

 

 

 

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

 

 

 

SENATE BILL 1042

 

 

 

 

AN ACT

 

amending title 35, chapter 2, Arizona Revised Statutes, by adding article 2.2; relating to management of public monies.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)


Be it enacted by the Legislature of the State of Arizona:

Section 1.1. Title 35, chapter 2, Arizona Revised Statutes, is amended by adding article 2.2, to read:

ARTICLE 2.2. Arizona STRATEGIC digital asset RESERVE

START_STATUTE35-331. Public monies; investment; virtual currency; reserves; definitions

A. In addition to the investment authority in articles 2 and 2.1 of this chapter, a public fund may invest not more than ten percent of the public monies under its control in virtual currency holdings.

B. If the United States secretary of the treasury establishes a strategic bitcoin reserve for the storage of government bitcoin holdings, a public fund may store the virtual currency holdings of the public fund in a secure SEGREGATED account within the strategic bitcoin reserve.

C. for the purposes of this section:

1. "Public fund" means the state treasurer or a retirement system.

2. "Retirement system" means a retirement plan or system that is established by or pursuant to title 38.

3. "Virtual currency" means a digital representation of value that functions as a medium of exchange, a unit of account and a store of value and includes stablecoins. virtual currency does not include legal tender issued by the united states or a foreign government.

4. "stablecoin" means a payment stablecoin as defined in the guiding and establishing national innovation for U.s. stablecoins (genius) act of 2025 (p.l. 119-27) and that is issued in compliance with all applicable federal laws governing such issuance. END_STATUTE

Sec. 2.2. Short title

This act may be cited as the "Arizona Strategic Digital Asset Reserve Act".