Arizona Senate Advances Bill to Create State Crypto Reserve Including XRP
Arizona’s Senate Finance Committee voted 4–2 on February 16, 2026, to give a “Do Pass” recommendation to SB1649, a bill to create a state‑managed Cryptocurrencies Strategic Reserve Fund under the State Treasurer. Filed by Republican Senator Mark Finchem on February 3, the proposal would allow the state to hold, manage, and — within defined risk and custody rules — lend or invest seized, surrendered or appropriated digital assets. The statutory definition explicitly names XRP alongside Bitcoin, DigiByte, qualifying stablecoins and select NFTs. The framework requires qualified custodians, encrypted storage, multiparty authorization and regular audits. The bill still needs full Senate and House approval and the governor’s signature to become law. Market reaction singled out XRP: the token traded near $1.43 after the committee vote, with neutral RSI (~44.7) and slightly negative Chaikin Money Flow (~-0.08). Analysts flagged $1.50 as immediate resistance (targets at $1.60 and $1.80 if broken; downside risk to $1.30 if rejected). Observers say the measure could set a state‑level precedent for institutional crypto adoption, potentially improving regulatory clarity and liquidity for XRP and the other listed assets if enacted. For traders: watch legislative progress, custodial and lending rules that affect liquidity, and whether institutional flows into XRP follow legal recognition — these will determine whether the news translates into sustained price movement.
Bullish
The committee vote and the bill’s explicit listing of XRP signal increased institutional and regulatory recognition at a state level. If enacted, SB1649 would allow Arizona to custody and lend digital assets, which can increase on‑chain liquidity and create new sources of demand (state purchases, custody inflows, lending markets) for listed tokens — a constructive factor for XRP price over the medium to long term. In the short term, impact is limited: the bill must clear more legislative steps and be signed by the governor before any material state flows begin. Technicals noted in the summaries (RSI ~44.7, CMF slightly negative) suggest neutral to mild selling pressure now; traders should watch legislative milestones, custody/lending rules, and whether institutional counterparties act on the legal clarity. A passed law would likely be bullish for XRP’s liquidity and institutional use cases, but absent concrete state purchases or lending programs the immediate price effect may remain muted or concentrated around volatility near key technical levels ($1.50 resistance, $1.30 support).