Senator Mark Finchem’s SB 1649 has cleared the Senate Rules Committee, advancing a forward-looking proposal to position Arizona at the forefront of digital asset stewardship.
SB 1649 establishes the Digital Assets Strategic Reserve Fund, administered by the State Treasurer. The fund would consist of legislative appropriations and digital assets that are seized, confiscated, or surrendered to the state. Instead of liquidating these assets immediately, Arizona would be able to hold and strategically manage them for long-term benefit.
The bill requires digital assets to be held using secure custody solutions through qualified custodians or regulated exchange-traded products. It also allows the State Treasurer to invest monies deposited in the fund and to loan digital assets if doing so does not increase financial risk to the state. This framework treats seized cryptocurrency as a strategic resource rather than simply disposing of it without regard to long-term value.
SB 1649 defines digital assets broadly, including cryptocurrency such as Bitcoin, XRP, stablecoins, non-fungible tokens, and other qualifying digital assets that meet a measurable economic threshold. The bill includes legislative findings that recognize the growing role of digital assets in the global economy.
As more criminal enterprises and illicit activities involve digital currency, law enforcement seizures of cryptocurrency have increased nationwide. Rather than allowing these assets to sit unmanaged or be prematurely liquidated, SB 1649 creates a responsible system to secure, evaluate, and potentially grow those holdings for the benefit of Arizona taxpayers.
Senator Finchem has consistently advocated for financial sovereignty, innovation, and prudent fiscal management. SB 1649 positions Arizona to responsibly manage digital assets while protecting taxpayers from unnecessary risk. With the bill clearing Rules, Arizona takes a significant step toward becoming a leader in digital asset policy and financial modernization.
Bill info: https://apps.azleg.gov/BillStatus/BillOverview/85288