XRP Added to Arizona Digital Asset Reserve Bill After 4–2 Vote

XRP has been formally added as an eligible asset in Arizona’s proposed Digital Assets Strategic Reserve Fund following a 4–2 committee vote in the Arizona State Legislature.

The amendment appears in S.B. 1649, which defines qualifying digital assets for inclusion in the state-managed reserve structure.

The fact sheet for the bill explicitly lists XRP alongside Bitcoin, DigiByte, stablecoins, non-fungible tokens, and other on-chain assets that meet defined cryptocurrency fair value benchmarks.

This development moves XRP into the category of assets that could be held, invested, or loaned within a state-administered digital reserve framework.

What the Bill Establishes

The legislation creates a Digital Assets Strategic Reserve Fund, administered by the State Treasurer. According to the fact sheet:

• The fund consists of legislative appropriations and digital assets seized, confiscated, or surrendered to the state.
• The Treasurer may invest deposited assets.
• The Treasurer may loan digital assets from the fund to generate additional returns, provided financial risk to the state does not increase.

Notably, the document states there is no anticipated fiscal impact to the state’s General Fund associated with the legislation.

By explicitly naming XRP within the definition of digital assets eligible under the framework, the bill removes ambiguity regarding its qualification status for potential inclusion in the reserve structure.

Structural Significance

The inclusion does not immediately mean Arizona will purchase XRP. Instead, it creates legal eligibility within the state’s digital asset reserve design.

That distinction matters. Legislative recognition expands optionality rather than guaranteeing allocation. The reserve structure is designed to hold and manage digital assets under defined custody and investment rules, potentially including:

• Secure custodial solutions
• Exchange-traded products issued by registered investment firms
• Structured lending mechanisms for yield generation

The broader implication is regulatory normalization at the state level, where digital assets are being formally integrated into treasury-style frameworks rather than treated as peripheral instruments.

Context Within the Reserve Framework

The bill defines digital assets broadly to include virtual currencies and native on-chain assets that meet specific economic and technical criteria. XRP’s inclusion signals that it meets the bill’s valuation and qualification thresholds.

If enacted into law, the framework would allow the Arizona State Treasurer to manage digital assets under a structured investment mandate. This represents a shift from passive seizure holding toward active treasury-style management.

What Happens Next

The bill has advanced at the committee level but must pass additional legislative stages before becoming law. The structural importance lies in formal eligibility — not immediate capital deployment.

Whether Arizona ultimately allocates funds into XRP will depend on final legislative approval, implementation guidelines, and treasury policy decisions.

For now, the development marks a regulatory milestone: XRP has moved from theoretical eligibility to explicitly defined inclusion within a proposed state-level digital reserve system.

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