XRP has been mentioned in a proposed state bill in the state of Arizona, which aims to create a Digital Assets Strategic Reserve Fund. This is a significant move in the adoption of cryptocurrencies in the United States, as the bill is currently being considered by the Arizona Legislature.

Overview of the Proposed Digital Asset Reserve

The legislation, which has been identified as S.B. 1649 in the Arizona State Senate, proposes the establishment of a Digital Assets Strategic Reserve Fund, which would be overseen by the State Treasurer and comprise monies appropriated by the Legislature and digital assets seized, confiscated, or surrendered to the state.

The State Treasurer would be permitted to invest deposited funds in the reserve in any given fiscal year, according to this proposal.

There is also a provision in the bill that permits the state to loan digital assets held in the fund, provided that it does not raise financial risks in Arizona. There is also emphasis on custody, with qualified custodians or exchange-traded products issued by registered investment companies.

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XRP’s Inclusion in the Legislative Discussion

The inclusion of XRP in the discussion regarding the reserve proposal has been noted by the digital asset community. Although the bill does not create a cryptocurrency reserve for XRP, it does discuss digital assets in general and evaluation criteria for those assets, such as XRP.

The legislation bases the fair value of the cryptocurrency on a weighted evaluation model. This model takes into account market capitalization, level of activity in the network, annual transaction value, development ecosystems, decentralization, and security. The assets that qualify on the basis of these parameters could be considered for the state’s reserve.

Custody, Risk Controls, and Oversight

The structure of reserve that is proposed places considerable emphasis on prudent and careful management of finances. The State Treasurer would function as the legal custodian, and investments would be reviewed in accordance with existing state constitutional provisions regarding public funds.

Importantly, the bill indicates that there is no anticipated fiscal impact on the state’s General Fund related to the legislation. Any form of lending or investment of digital assets should be designed in a way that does not increase financial risk to the state. The wording used here is conservative, reflecting a guarded approach to integrating digital assets into financial operations.

Broader Context of State-Level Crypto Policy

Arizona has in the past shown interest in exploring blockchain/digital asset initiatives. The development of a structured reserve proposal shows that there is still interest in formalizing the management of cryptocurrencies.

If the measure passes, it will place Arizona in a limited but expanding category of US jurisdictions considering various frameworks for governing digital assets. The proposed legislation is still under legislative consideration and subject to various stages of scrutiny, including potential amendments, before it is finally approved.

Also Read: Breakout Ahead For XRP After Massive Capitulation Losses Hit 2022-Style Levels

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Filed under: Bitcoin - @ February 23, 2026 6:26 pm