SB1191 amends Arizona Revised Statutes related to escrow agents, specifically regarding the permissible forms of deposit into an escrow account. The bill introduces the option for escrow agents to accept deposits via distributed ledger technology transfers within a secure network of federally insured depository institutions. These transfers must be recorded on a ledger and securely deposited in the escrow agent's depository account. The depository institution must settle these transfers using an established national clearing house network, but the transfers cannot be settled or backed by a central bank digital currency. The transfers must be fully settled, irrevocably credited, and transferred in U.S. dollars. Additionally, the value of the transferred digital asset must be backed by U.S. dollars and redeemable on a one-to-one basis. The definition of "distributed ledger technology" is also provided, emphasizing that the ledger must be tamper-resistant and protected with cryptography.

The bill also makes a technical change by specifying the amount an escrow agent may disburse per transaction without complying with the deposit requirements as "$500" instead of "five hundred dollars." The bill does not apply to account servicing.

Statutes affected:
Introduced Version: 6-843
Senate Engrossed Version: 6-843
House Engrossed Version: 6-843
Chaptered Version: 6-843