The proposed bill would establish the Digital Assets Strategic Reserve Fund, which would consist of digital assets held by, confiscated by, or surrendered to the state. The State Treasurer would be responsible for administering this fund and would be required to deposit these digital assets using a secure custody solution provided by a qualified custodian or in the form of an exchange-traded product issued by an Arizona-registered investment company. Additionally, the bill allows the State Treasurer to invest the total amount of money in the fund and to loan digital assets from the fund, provided that such loans do not increase financial risks to the state.

The bill also introduces definitions for key terms related to digital assets, including "cryptocurrency fair value," which evaluates a coin's economic and technical vitality, and expands the definition of "digital assets" to include various cryptocurrencies and tokens. It adds a technology provider of a secure custody solution to the definition of "qualified custodian" and outlines the requirements for secure custody solutions. Furthermore, the bill modifies existing statutes regarding the reporting and handling of unclaimed digital assets, ensuring that any airdrops or staking rewards are transferred to the Bitcoin and Digital Assets Reserve Fund after three years if the assets remain unclaimed.

Statutes affected:
Introduced Version: 41-181
Senate Engrossed Version: 41-181