Arizona lawmakers are considering a bill that would allow the state to keep digital assets in reserve instead of selling them, and XRP is one of the names on the list.

The application would place these assets under the control of the state treasurer and could also allow the state to obtain additional profits through staking, airdrops or constrained borrowing if the move does not raise financial risk.

What will the fund hold?

SB1649 Creates a Strategic Digital Asset Reserve Fund consisting of digital assets held in, confiscated by, or transferred to Arizona.

The bill’s text also says the treasurer can deposit state-owned digital assets through a secure depository solution or approved exchange-traded product and then directly manage the fund.

Defines “digital assets” broadly enough to include Bitcoin, XRPstablecoins, non-fungible tokens, Dash, internet computer, Ravencoin, Chia, eCash, Moneroand other digital-only assets that meet the fair value test set out in the Act.

This fair value test is based on adoption, annual transactions, annual transaction value and development activities. Simply put, the bill attempts to sort assets by market operate and technical strength before they can be treated as reserve resources.

The wording is broad, but it is not an open invitation to buy anything. First, it sets screening standards.

A bill that is constantly moving

The measure has already received approval from the House Rules Committee and is approaching a full vote in the House. A tracker of the Arizona legislation shows the committee approved it 8-0 on March 30, after earlier Senate action sent it through the chamber. This means that the act is still valid, but it is not yet law.

The House’s move matters because it brings the proposal closer to the finish line. The bill would give the treasurer the power to manage the fund and also allow digital assets reported as abandoned property to be delivered in their native form to the state or its custodian.

If these assets go unclaimed long enough, staking and airdrop rewards may be transferred to the reserve fund.

Why XRP is in the mix

XRP caught particular attention because it is mentioned directly in the bill rather than being implied by a broad category of cryptocurrencies. The same section that lists Bitcoin also lists XRP along with several other assets that could qualify under reserves.

Featured image from Meta, chart from TradingView