Bill > SB1373

This bill establishes a Digital Assets Strategic Reserve Fund for Arizona, which allows the state treasurer to deposit and manage digital assets (including cryptocurrencies like Bitcoin, stablecoins, and non-fungible tokens) that are seized by the state. The fund will be continuously appropriated and exempt from standard appropriations lapsing rules. The state treasurer is limited to investing no more than 10% of the fund's total amount in any fiscal year and may loan digital assets from the fund to generate additional returns if doing so does not increase financial risks. The bill includes detailed definitions for key terms like "cryptographic private key" and "secure custody solution," which outline specific technological and security requirements for storing and managing digital assets. A "secure custody solution" must meet extensive security criteria, such as having exclusively known cryptographic private keys, using encrypted environments, maintaining hardware in geographically diverse secure data centers, enforcing multi-party governance, logging user actions, and undergoing regular security audits. The fund will be managed through qualified custodians like federal or state-chartered banks, trust companies, or special purpose depository institutions that can securely handle virtual currency.