Bill > SB1649

This bill establishes a "Digital Assets Strategic Reserve Fund" managed by the State Treasurer, which will hold monies appropriated by the legislature and digital assets seized, confiscated, or surrendered to the state. The State Treasurer is authorized to deposit these digital assets using secure custody solutions or exchange-traded products, invest the fund's monies, and loan digital assets to generate returns as long as it doesn't increase financial risk to the state. The bill defines key terms such as "cryptocurrency fair value," which is a weighted evaluation of a coin's economic and technical vitality using metrics like market capitalization and network activity; "cryptographic private key," a secret code for encrypting and decrypting data; "digital asset," which includes virtual currency, coins, and certain cryptocurrencies meeting a specific fair value score, as well as non-fungible tokens and other digital-only assets conferring rights; "exchange-traded product," a financial instrument traded on a regulated exchange; "qualified custodian," a regulated financial institution holding virtual currency; and "secure custody solution," a technological product or service designed to protect digital assets with strict access controls and security measures. The legislature also finds that a "digital gold standard benchmark" is established to provide security and stability in the digital asset market, and that "cryptocurrency fair value" metrics are intended to create a universal benchmark for evaluating digital assets.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/85288