The proposed bill seeks to establish the Digital Assets Strategic Reserve Fund, which will be administered by the State Treasurer and will consist of funds appropriated by the legislature as well as digital assets seized by the state. The bill introduces new provisions that require the State Treasurer to deposit these seized digital assets using secure custody solutions provided by qualified custodians or in exchange-traded products issued by Arizona-registered investment companies. Additionally, it sets a limit on investments, prohibiting the State Treasurer from investing more than 10% of the total fund in any given fiscal year. The bill also allows the State Treasurer to loan digital assets from the fund to generate additional returns, provided that such loans do not increase financial risks to the state.

Furthermore, the bill defines key terms related to digital assets, including "cryptographic private key," "digital assets," "exchange traded product," and "qualified custodian." It specifies that digital assets encompass various forms of virtual currencies, coins, and tokens, and outlines the requirements for secure custody solutions to ensure the safety of these assets. The bill also clarifies that the fund's monies are continuously appropriated and exempt from lapsing, thereby ensuring ongoing access to these resources. Overall, the bill aims to modernize the state's approach to managing digital assets while safeguarding public funds.

Statutes affected:
Introduced Version: 41-180
Senate Engrossed Version: 41-180
House Engrossed Version: 41-180