The Arizona State Legislature has officially included XRP as a qualifying asset in its proposed Digital Assets Strategic Reserve Fund, following a committee vote of 4 to 2. This amendment is part of Senate Bill 1649, which outlines the digital assets that can be included in the state-managed reserve.
The bill”s fact sheet identifies XRP alongside other digital assets such as Bitcoin, DigiByte, stablecoins, non-fungible tokens (NFTs), and various on-chain assets that meet specific fair value criteria. This addition allows XRP to be potentially held, invested, or loaned within the state-administered digital reserve framework.
The legislation establishes a Digital Assets Strategic Reserve Fund overseen by the State Treasurer. According to the bill, the fund will consist of legislative appropriations and digital assets that have been seized, confiscated, or surrendered to the state. The Treasurer is authorized to invest these deposited assets and may also loan digital assets from the fund to generate returns, so long as it does not increase financial risk to the state.
Importantly, the document notes that there is no expected fiscal impact on the state”s General Fund resulting from this legislation. By explicitly listing XRP in the definition of eligible digital assets, the bill clarifies its qualification status, eliminating any uncertainty about its inclusion in the reserve.
While the inclusion of XRP does not guarantee that Arizona will purchase it, it opens up legal eligibility within the state”s digital asset reserve design. This distinction is crucial, as legislative acknowledgment enhances optionality without ensuring immediate capital deployment.
The reserve structure aims to manage and hold digital assets under established custody and investment protocols, which may encompass secure custodial solutions, exchange-traded products from registered firms, and structured lending mechanisms aimed at yield generation.
From a broader perspective, this move signifies a step toward regulatory normalization at the state level, where digital assets are formally integrated into treasury-like frameworks rather than remaining on the periphery as niche instruments.
The bill has progressed through committee but must navigate additional legislative hurdles before it can become law. The structural significance lies in the formal eligibility created — not in any immediate allocation of funds to XRP. The decision on whether Arizona will eventually invest in XRP will hinge on final legislative approval, implementation guidelines, and treasury policy decisions.
This latest development marks a significant regulatory milestone, transitioning XRP from theoretical eligibility to being explicitly recognized within a proposed state-level digital reserve system.
