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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
digital assets strategic reserve fund
Purpose
Establishes the Digital Assets Strategic Reserve Fund (Fund), administered by the State Treasurer, and consisting of monies appropriated by the Legislature and digital assets seized by, confiscated by or surrendered to the state. Allows the State Treasurer to invest the total amount of monies deposited in the Fund in any fiscal year and to loan digital assets from the Fund, if the loan does not increase financial risk to the state.
Background
The State Treasurer is responsible for the safekeeping of all securities for which the State Treasurer is the lawful custodian. The State Treasurer invests state monies with consideration for the probable safety of capitol and the probable rate of return over extended periods of time. The State Board of Investment reviews the investment activities of the State Treasurer (Ariz. Const. art. 10 § 7).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Establishes the Fund, administered by the State Treasurer, and consisting of monies appropriated by the Legislature and digital assets seized by, confiscated by or surrendered to the state.
2. Requires the State Treasurer to deposit digital assets seized by, confiscated by or surrendered to the state in the Fund through the use of a secure custody solution by a qualified custodian or in a form of an exchange traded product that is issued by an investment company registered in Arizona.
3. Allows the State Treasurer to invest the total amount of monies deposited in the Fund in any fiscal year.
4. Allows the State Treasurer to loan digital assets from the Fund to generate additional returns, if the loan does not increase any financial risks to the state.
5. Defines cryptocurrency fair value as a weighted evaluation of a coin's economic and technical vitality using performance metrics, including market capitalization, network activity and utility, annual transaction value, development ecosystems and a network power source that measures decentralization and security.
6. Defines digital assets to include virtual currency, virtual coins 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, stablecoin, a non-fungible token and any other digital-only assets that confer economic, proprietary or access rights or powers.
7. Defines terms.
8. Contains a statement of legislative findings.
9. Becomes effective on the general effective date.
Prepared by Senate Research
February 12, 2026
MG/SJ/hk