Official Summary Text
SB1042 - 572R - Senate Fact Sheet
Assigned to
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PASSED BY COW
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
AMENDED
FACT SHEET FOR
S.B. 1042
public monies;
investment; virtual currency
Purpose
Allows the State
Treasurer, the Arizona State Retirement System and the Public Safety Personnel
Retirement System (public funds) to invest up to 10 percent of the public
monies under its control in virtual currency holdings.
Background
The State
Treasurer is responsible for the safekeeping of all securities for which the
State Treasurer is the lawful custodian. The State Treasurer invests state
monies with consideration for the probable safety of capitol and the probable
rate of return over extended periods of time. The State Board of Investment
(BOI) reviews the investment activities of the State Treasurer
(
Ariz.
Const. art. 10 � 7
).
Statute allows
the Arizona State Retirement System (ASRS) Board to allocate assets and use
investment strategies to meet the investment goals and policies that ASRS
prescribes. The ASRS Board may appoint multiple investment managers to invest
and reinvest ASRS assets. An investment manager may, subject to ASRS-determined
directives, hold, purchase, sell, assign, loan, borrow, transfer and dispose of
any securities and investments in which any account monies are invested (
A.R.S.
� 38-718
).
The Public
Safety Personnel Retirement System (PSPRS) administers separate plans for
Arizona's elected officials, known as the Elected Officials' Retirement Plan,
and for corrections officers, known as the Corrections Officer Retirement Plan.
Statute allows the PSPRS Board of Trustees (PSPRS Board) to invest and
reinvest, alter and change the monies accumulated under PSPRS and other PSPRS
Board-administered retirement plans and trusts at the PSPRS Board's discretion
(A.R.S. ��
38-802
;
38-848
;
and
38-882
).
There is no
anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1.
Allows a public fund to invest up to 10 percent of the public monies
under its control in virtual currency holdings.
2.
Allows public funds, if the U.S. Secretary of the Treasury creates a
strategic bitcoin reserve for the purpose of storing government bitcoin
holdings, to store its virtual currency holdings in a secure segregated account
within the strategic bitcoin reserve.
3.
Defines
public fund
as the State Treasurer or a retirement
system.
4.
Defines
retirement system
as a retirement system established by
or pursuant to statute.
5.
Defines
virtual currency
as a digital representation of value
that functions as a medium of exchange, a unit of account and includes stablecoins.
6.
Excludes, from the definition of
virtual currency
, legal tender
issued by the United States or a foreign government.
7.
Defines
stablecoin
as a
payment stablecoin
as defined in
the federal Guiding and Establishing National Innovation for U.S. Stablecoins act
of 2025 and that is issued in compliance with all applicable federal laws
governing such issuance.
8.
Designates this legislation as the
Arizona Strategic Digital Asset Reserve
Act
.
9.
Becomes effective on the general effective date.
Amendments Adopted by
Committee of the Whole
1.
Adds stablecoin to the definition of
virtual currency
.
2.
Defines
stablecoin
.
3.
Renames this legislation as the
Arizona Strategic Digital Asset
Reserve Act
.
Senate Action
FIN��������� 1/26/26 ���� DP������ 4-3-0
Prepared by
Senate Research
February 25,
2026
MG/SJ/hk
Current Bill Text
Read the full stored bill text
SB1042 - 572R - S Ver
Senate Engrossed
public monies;
investment; virtual currency
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1042
AN
ACT
amending
title 35, chapter 2, Arizona Revised Statutes, by adding article 2.2; relating
to management of public monies.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section
1.
1. Title
35, chapter 2, Arizona Revised Statutes, is amended by adding article 2.2, to
read:
ARTICLE
2.2.
Arizona
STRATEGIC
digital
asset
RESERVE
START_STATUTE
35-331.
Public monies; investment; virtual currency; reserves;
definitions
A. In addition to the investment
authority in articles 2 and 2.1 of this chapter, a public fund may invest not
more than ten percent of the public monies under its control in virtual
currency holdings.
B. If the United States secretary of
the treasury establishes a strategic bitcoin reserve for the storage of
government bitcoin holdings, a public fund may store the virtual currency
holdings of the public fund in a secure SEGREGATED account within the strategic
bitcoin reserve.
C. for the purposes of this section:
1. "Public fund" means the
state treasurer or a retirement system.
2. "Retirement system"
means a retirement plan or system that is established by or pursuant to title
38.
3. "Virtual currency" means
a digital representation of value that functions as a medium of exchange, a
unit of account and a store of value
and includes
stablecoins. virtual currency does not include legal tender issued
by the united states or a foreign government.
4. "stablecoin" means a
payment stablecoin as defined in the guiding and establishing national
innovation for U.s. stablecoins (genius) act of 2025 (p.l. 119-27) and that is
issued in compliance with all applicable federal laws governing such issuance.
END_STATUTE
Sec.
2.
2.
Short
title
This act may be cited as the
"Arizona Strategic
Digital Asset Reserve
Act".