Arizona moves forward with bill to include Bitcoin and XRP in state reserve fund
February 23, 2026
Arizona legislators have made progress on a bill that would enable the state to include digital assets in a strategic reserve, with XRP being one of the eligible assets. The proposal successfully passed a key committee vote with a 4-2 majority and will now move forward in the state legislative process. Despite facing regulatory challenges in the past, the bill signifies a significant step in integrating XRP into a public finance framework.
The introduction of the Digital Assets Strategic Reserve Fund, to be overseen by the Arizona State Treasurer, aims to include digital assets confiscated or surrendered to the state, as well as funds allocated by policymakers. The Treasurer would have the authority to invest reserve funds over the fiscal year, with provisions for lending digital assets held in the reserve to generate additional returns while mitigating financial risks to the state. Lawmakers clarified that the measure is projected to have no impact on Arizona’s General Fund, clearly separating reserve operations from primary state expenditures and budgeting.
Broad parameters outlined in the bill detail what constitutes a digital asset under the reserve structure, explicitly mentioning Bitcoin, DigiByte, and XRP, along with stablecoins, non-fungible tokens, and other digital-only assets that confer financial or proprietary rights. By categorizing XRP alongside leading digital assets, the legislation integrates the token into a diverse asset class rather than treating it as an outlier. This inclusive approach accommodates various blockchain-based instruments with differing technological models and use cases.
In addition to asset eligibility, the bill introduces a framework for evaluating the fair value of cryptocurrencies based on criteria such as market capitalization, network activity, and decentralization. This evaluation method emphasizes measurable indicators over short-term price fluctuations, with market size and user participation serving as significant benchmarks. The structured approach indicates the state’s intention to apply thorough analysis when determining how assets are managed within the reserve.
While the legislation still requires further debate and voting before becoming law, its advancement reflects a shift in how digital assets are viewed at the state level. Rather than solely focusing on enforcement and compliance, tokens like XRP are now being considered in proposals related to treasury management and public asset oversight. If enacted, the reserve would establish a formal mechanism for Arizona to hold and potentially utilize digital assets within a clearly defined legal framework, advancing through the legislative process as policymakers assess its financial and regulatory implications.
