By Arizona lawmakers advanced a proposal that would allow the state to hold digital assets in a strategic reserve.
The legislation, which includes XRP among eligible assets, cleared a key committee vote by 4–2 and will now proceed further through the state legislature.
For a token that has spent years under regulatory scrutiny, the proposal places XRP within a public finance structure.
The move signals how some states are exploring digital assets as part of broader treasury and fiscal management strategies.
Reserve structure
The proposed Digital Assets Strategic Reserve Fund would be managed by Arizona’s State Treasurer.
According to the bill, the fund would consist of digital assets seized or surrendered to the state, as well as funds appropriated by lawmakers.
The Treasurer would have the authority to invest reserve funds during a fiscal year.
The legislation also permits the lending of digital assets held in the reserve to generate additional returns.
However, such activity must not increase financial risk to the state.
Lawmakers have stated that the measure is not expected to affect Arizona’s General Fund.
This distinction is intended to separate the reserve’s operations from core state spending and budgeting.
Asset eligibility
The bill outlines broad criteria for what qualifies as a digital asset under the reserve framework.
It specifically names Bitcoin, DigiByte, and XRP.
It also includes stablecoins, non-fungible tokens, and other digital-only assets that confer economic or proprietary rights.
By listing XRP alongside Bitcoin and other recognised digital assets, the legislation situates the token within a diversified category rather than treating it as an exception.
The inclusion covers assets that may have different technological models and use cases, reflecting an attempt to create a flexible structure that can accommodate multiple types of blockchain-based instruments.
Valuation framework
Beyond naming eligible assets, the bill introduces a framework for assessing cryptocurrency fair value.
The criteria include market capitalisation, network activity, and decentralisation.
This approach suggests that digital assets would be evaluated using measurable indicators rather than short-term price movements alone.
Market size and user participation are positioned as relevant benchmarks.
The framework signals that the state intends to apply structured analysis while determining how assets are held or managed within the reserve.
Next steps
The legislation still faces additional debate and votes before it can become law.
Advancing past the committee stage does not guarantee final approval.
Even so, reaching this point reflects a broader shift in how digital assets are discussed at the state level.
Rather than being framed solely through enforcement or compliance questions, tokens such as XRP are appearing in proposals tied to treasury management and public asset oversight.
If enacted, the reserve would create a formal mechanism for Arizona to hold and potentially deploy digital assets within a defined legal structure.
For now, the proposal continues through the legislative process as policymakers weigh its financial and regulatory implications.
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