A critical bill that could allow Arizona to hold cryptocurrencies, including $XRP, has recently made significant progress.
In a landmark development, Arizona Senate Bill 1649 (SB1649) has cleared the House Rules Committee and is now headed to a full House floor vote. This progress follows an earlier milestone when the bill, introduced by Mark Finchem, passed the Senate Finance Committee with a 4–2–1 vote.
Key Points
- Lawmakers in Arizona are advancing a bill that would allow the state to hold cryptocurrencies, including $XRP, in a strategic reserve.
- The legislation has cleared the House Rules Committee with support from eight lawmakers and now heads to a full House floor vote.
- Besides $XRP, the bill identifies Bitcoin and Monero as eligible reserve assets.
- It also authorizes the state treasurer to invest reserve holdings to generate returns.
SB1649 Legislation Advances in Arizona House Committee
Notably, the bill recently passed the House Rules Committee with all eight lawmakers voting in favor. As a result, the legislation will now advance to a full vote on the House floor, marking the next major step before it can become law.
Under the proposal, the state would be allowed to retain digital assets, including $XRP, obtained through confiscation, surrender, or other legal processes. Currently, authorities typically auction such assets. However, SB1649 would allow Arizona to hold them as part of a long-term strategic reserve.
The State Treasurer would administer the fund and could include several cryptocurrencies that meet a defined cryptocurrency fair value threshold. This threshold evaluates an asset’s economic and technical strength based on factors such as adoption levels, annual transaction volume, total transaction value, and ecosystem development.
$XRP Named Among Reserve Assets
Importantly, $XRP appears among the cryptocurrencies eligible for inclusion in the reserve. In addition to $XRP and Bitcoin, the bill mentions assets such as NEAR Protocol, Nano, and Monero.
Furthermore, the legislation allows the state treasurer to invest assets held in the fund to generate returns. However, the proposal clearly states that any investment activity must avoid increasing the state’s financial risk.
The inclusion of $XRP in the proposal signals growing institutional recognition of the asset in government policy discussions.
Next Steps
Although SB1649 has passed the House Rules Committee, it must still secure approval through a full vote in the House. If lawmakers approve it, the bill will move to the governor’s desk for final consideration and possible signing into law.
If enacted, the legislation would establish a Digital Assets Strategic Reserve Fund, enabling the state to retain certain cryptocurrencies, such as $XRP and Bitcoin, rather than sell them at auction.
$XRP Inclusion in Digital Asset Reserve Initiative
Notably, both $XRP and Bitcoin have increasingly appeared in discussions at the national and state levels about digital asset reserves. This trend accelerated during Donald Trump’s presidential campaign and continued after he assumed office.
Following through on campaign pledges, Trump signed an executive order creating a Strategic Bitcoin Reserve and a broader digital asset stockpile that could include $XRP.
Meanwhile, Arizona lawmakers are also advancing Arizona Senate Bill 1042, which would allow the state to invest up to 10% of its public funds in cryptocurrencies. These proposals place Arizona among the states exploring deeper integration of digital assets into public finance.