Arizona moved closer this week to establishing a public cryptocurrency reserve after lawmakers advanced a bill that includes XRP among the tokens the state could hold.
The progress followed a committee vote that cleared an early hurdle for Senate Bill SB1649. The inclusion of XRP has already attracted attention from traders and officials monitoring crypto policy.
The measure passed a 4–2 vote on February 16 in the Arizona Senate Finance Committee and now moves to the next steps in the legislative process. The bill would authorize the state treasurer to hold, manage, and invest digital assets that come into state possession, such as those seized in law enforcement actions or surrendered to the state. It would also allow for modern custody solutions and regulated exchange-traded vehicles for safekeeping.
The plan is simple in concept: create a fund, transfer eligible assets into a managed reserve, and allow officials to use advanced custody tools to mitigate risk. Reports indicate XRP is listed as an eligible asset, highlighting a token that has faced past regulatory uncertainty but also has strong supporters who point to its use in cross-border payments.
Some view the move as a step toward normalizing public-sector interaction with cryptocurrencies, while others caution that it could raise unresolved legal, accounting, and operational questions.
Market reactions have been mixed, with traders showing both caution and optimism. Several observers noted that state-level recognition of a specific token can influence market sentiment, even if the direct impact on supply and demand is minimal.
If the bill advances, legal experts are expected to scrutinize its details, particularly regarding custody rules and how the fund values and reports its holdings. Practical concerns also remain, including how the assets will be audited, insured, and governed—specifically defining when and how the fund can buy, sell, or hold tokens.
At the time of writing, XRP is trading at $1.46, up 0.7% over the past day and 6.7% over the past week.
Frequently Asked Questions
Of course Here is a list of FAQs about XRP gaining attention due to Arizonas digital asset legislation designed to be clear and helpful for all levels of interest
Beginner General Questions
1 Whats the big news about XRP and Arizona
Arizonas state legislature has passed a bill that would allow state agencies to accept cryptocurrencies like XRP for tax payments This is seen as a major step toward mainstream adoption and has drawn positive attention to XRP specifically
2 Why is this Arizona bill such a big deal for XRP
It signals that a major US state views certain digital assets as legitimate enough for official government use For XRP which has faced regulatory uncertainty this kind of practical proinnovation legislation is a strong vote of confidence
3 Im new to this What is XRP
XRP is a digital asset and the native cryptocurrency of the XRP Ledger a blockchain designed for fast lowcost crossborder payments and currency exchange Its different from Bitcoin as it was created by a company to solve specific problems in the financial system
4 Can I actually pay my Arizona taxes with XRP right now
Not yet The bill has passed the legislature but still needs to be signed into law by the Governor Even after signing state agencies will need time to set up the technical systems to accept crypto payments
Intermediate Market Impact Questions
5 Will this make the price of XRP go up
While positive news can influence market sentiment cryptocurrency prices are driven by many complex factors This news is considered a strong positive for XRPs longterm utility and adoption which can be a bullish signal
6 How is this different from Bitcoin or Ethereum being accepted
The Arizona bill is designed to be technology neutral meaning it could include many cryptocurrencies However XRPs core use casefast cheap settlementaligns perfectly with the need for efficient tax payments making it a prime candidate and why its getting specific attention
7 Does this mean XRP is officially not a security now
No The classification of XRP as a security is a federal question decided by the SEC and courts Arizonas bill is about