 ▲ XRP (XRP), U.S. Dollar (USD) |
The state of Arizona is shaking up the market landscape as it pushes forward groundbreaking legislation to hold not only Bitcoin but also digital assets including XRP as part of its state-level public reserve assets.
According to crypto media outlet NewsBTC on February 18 (local time), the Arizona legislature recently advanced a digital asset reserve bill that explicitly lists XRP among the assets the state government is permitted to hold. The move became visible when the Arizona Senate Finance Committee passed the related bill, SB1649, by a 4–2 vote. It is rare for a state to formally designate specific digital assets as official reserve assets, and the measure is expected to further strengthen the institutional standing of digital assets, including XRP.
The bill grants the Arizona State Treasurer the authority to directly custody, manage, and invest digital assets held by the state government. In particular, it includes digital assets seized in law enforcement actions or transferred to the state within its scope of management, allowing them to be securely handled using modern custodial options and regulated exchange-traded instruments. This signals that the public sector is beginning to recognize digital assets not merely as confiscated property to be liquidated, but as strategic investment assets.
Market and policy experts are paying close attention to the explicit inclusion of XRP in the legislation. Although XRP has experienced considerable volatility in the past due to regulatory uncertainty, it maintains strong support based on its real-world use cases in cross-border payments. Arizona’s decision is expected to positively impact market sentiment by increasing public sector acceptance of specific digital assets. However, some caution that legal and accounting standards, along with operational complexities, still present significant challenges to be resolved.
Crypto investors have generally responded optimistically to news of the bill’s passage. While state-level adoption may not immediately trigger dramatic changes in supply and demand, it could serve as a powerful catalyst for enhancing credibility within the institutional framework. If the bill receives final approval, detailed governance structures for public institutions’ digital asset management—such as valuation methods, insurance treatment, and audit rules—are expected to follow.
Currently, XRP is trading near $1.46, maintaining a solid trend. If Arizona’s initiative to establish digital assets as reserve assets spreads to other U.S. states, liquidity and the institutional foundation of the broader crypto market could expand significantly. As public sector capital flows extend beyond Bitcoin (BTC) to utility-focused assets like XRP, the development may mark the establishment of new standards in the era of digital finance.
The institutionalization of digital assets has moved beyond a passing trend and entered a phase of integration into national financial systems. Arizona’s proactive legislative efforts present a milestone for other regions and countries in determining how to manage and generate value from digital assets. As regulation and innovation find balance, digital assets are expected to establish themselves as a core pillar of the future economy.
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