Lawmakers in Arizona are considering a bill that would allow the state to hold digital assets in reserve instead of selling them, and XRP is one of the names on the list.
the an offer It would put those assets under the control of the state treasurer, and could also allow the state to earn additional revenue through staking, airdrops, or limited lending if such a move does not raise financial risks.
What will the fund hold?
SB1649 creates a Strategic Digital Asset Reserve Fund consisting of digital assets held, seized, or delivered to the State of Arizona.
The text of the bill also stipulates that the treasurer can deposit state-owned digital assets through a secure custody solution or an approved exchange-traded product, and then directly manage the fund.
It defines “digital assets” broadly enough to include Bitcoin, XRPStablecoins, Non-Fungible Tokens, Dash, Internet Computer, Ravencoin, Chia, eCash, Moneroand only other digital assets that meet the bill’s fair value test.
The fair value test is based on adoption, annual transactions, annual transaction value and development activity. In plain terms, the bill attempts to sort assets according to market usage and technical strength before they are treated as reserve property.
The wording is broad, but it’s not an open invitation to buy anything. It puts the screening standard first.
The bill keeps moving
the Measures It has already received approval from the House Rules Committee and is headed to a full vote in the House. Arizona’s legislative tracking shows the committee approved it 8-0 on March 30, after an earlier Senate measure sent it through the chamber. This means that the bill is still alive, but has not yet become law.
The House’s move is important because it brings the proposal closer to the finish line. The bill would give the treasurer the authority to administer the fund, and would also allow digital assets reported as abandoned property to be delivered in their original form to the state or their custodian.
If these assets remain unclaimed long enough, rewards and airdrops can be transferred to the reserve fund.
Why is XRP in the mix?
XRP attracted more attention because it was mentioned directly in the bill, and was not included in a broad cryptocurrency category. The same section that lists Bitcoin also lists XRP along with many other assets that could qualify under the reserve framework.
Featured image from Meta, chart from TradingView
