XRP Soon Enter Arizona's Treasury: Here's What's Happening

Arizona lawmakers are considering a bill that could let the state keep digital assets like XRP in a reserve instead of selling them off. XRP is one of the names on the list, alongside Bitcoin and other digital assets.

What The Fund Would Hold

The proposal, known as SB1649, creates a Digital Assets Strategic Reserve Fund made up of digital assets that are held by, confiscated by, or surrendered to Arizona. The bill defines "digital asset" broadly enough to include Bitcoin, XRP, stablecoins, nonfungible tokens, Dash, Internet Computer, Ravencoin, Chia, eCash, Monero, and other digital-only assets that meet the bill's fair-value test.

Screening Standard

The fair-value test is built around adoption, annual transactions, annual transaction value, and development activity. This means that the bill tries to sort assets by market use and technical strength before they can be treated as reserve holdings.

Bill Progress and Implications

The measure has already cleared the House Rules Committee and is headed to a full House vote. Arizona legislative tracking shows the committee approved it 8-0 on March 30, after earlier Senate action sent it across the chamber. If the bill becomes law, it could let the state earn extra returns through staking, airdrops, or limited lending if the move does not raise financial risk.

Key Takeaways

• XRP is one of the digital assets that could be included in Arizona's Digital Assets Strategic Reserve Fund.
• The bill has cleared the House Rules Committee and is headed to a full House vote.
• The fund would be managed by the state treasurer and could earn returns through staking, airdrops, or limited lending.
• The bill defines "digital asset" broadly, but sets a screening standard to ensure that only assets with strong market use and technical strength are included.

Frequently Asked Questions

What is the purpose of the Digital Assets Strategic Reserve Fund?

The fund is designed to allow Arizona to hold digital assets in a reserve instead of selling them off, and to earn returns through staking, airdrops, or limited lending.

Which digital assets could be included in the fund?

The bill defines "digital asset" broadly, but specifically mentions Bitcoin, XRP, stablecoins, nonfungible tokens, Dash, Internet Computer, Ravencoin, Chia, eCash, Monero, and other digital-only assets that meet the bill's fair-value test.