SB 1649 — digital assets strategic reserve fund

(xi) CHIA.

(xii) ECASH.

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1649 (xiii) MONERO.

(xiv) NANO.

(xv) ANY OTHER DIGITAL-ONLY ASSETS THAT CONFER ECONOMIC, PROPRIETARY OR ACCESS RIGHTS OR POWERS.

THE"EXCHANGE-TRADED NUMBERPRODUCT" OFMEANS PUBLICA ASSISTANCEFINANCIAL BENEFICIARIESINSTRUMENT WHOTHAT AREIS TRADED ON A SPOUSEUNITED ORSTATES-REGULATED DEPENDENTEXCHANGE, OFTHAT DERIVES VALUE FROM AN EMPLOYEEUNDERLYING POOL OF THEASSETS, EMPLOYERINCLUDING ANDSTOCKS, THEBONDS, TYPECOMMODITIES OFOR ASSISTANCEINDEXES, EACHAND SPOUSETHAT ORIS DEPENDENTAPPROVED RECEIVES.BY ANY OF THE FOLLOWING:

(a) THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.

(b) THE COMMODITIES FUTURES TRADING COMMISSION.

(c) THE DEPARTMENT OF INSURANCE AND FINANCIAL INSTITUTIONS.

IF"QUALIFIED AVAILABLE,CUSTODIAN" THEMEANS PUBLICEITHER WELFAREOF PROGRAMTHE COSTSFOLLOWING: TO THIS STATE FOR EMPLOYED INDIVIDUALS AND ENROLLED DEPENDENTS.

(a) A FEDERAL OR STATE-CHARTERED BANK, TRUST COMPANY OR SPECIAL PURPOSE DEPOSITORY INSTITUTION OR A COMPANY REGULATED BY THIS STATE THAT HAS CUSTODY OF VIRTUAL CURRENCY FOR AN APPROVED EXCHANGE-TRADED PRODUCT.

(b) A TECHNOLOGY PROVIDER OF A SECURE CUSTODY SOLUTION.

IF"SECURE ANCUSTODY EMPLOYERSOLUTION" OFFERSMEANS HEALTHA BENEFITSTECHNOLOGICAL TOPRODUCT THEOR EMPLOYER'SA EMPLOYEES,BLENDED THEPRODUCT NUMBEROR OFSERVICE EMPLOYEESTHAT WHOMEETS RECEIVEALL PUBLICOF ASSISTANCE.THE FOLLOWING:

(a) HAS A CRYPTOGRAPHIC PRIVATE KEY THAT SECURES A DIGITAL ASSET AND THAT IS EXCLUSIVELY KNOWN BY AND ACCESSIBLE BY A GOVERNMENTAL ENTITY.

(b) HAS A CRYPTOGRAPHIC PRIVATE KEY THAT SECURES A DIGITAL ASSET, THAT IS EXCLUSIVELY CONTAINED WITHIN AN ENCRYPTED ENVIRONMENT AND THAT IS ACCESSIBLE ONLY THROUGH AN END-TO-END ENCRYPTED CHANNEL.

(c) HAS A CRYPTOGRAPHIC PRIVATE KEY THAT SECURES A DIGITAL ASSET THAT IS NEVER CONTAINED BY, ACCESSIBLE BY OR CONTROLLABLE THROUGH A SMARTPHONE.

(d) HAS HARDWARE THAT CONTAINS A CRYPTOGRAPHIC PRIVATE KEY THAT SECURES A DIGITAL ASSET AND THAT IS MAINTAINED IN AT LEAST TWO GEOGRAPHICALLY DIVERSIFIED AND SPECIALLY DESIGNATED SECURE DATA CENTERS.

(e) ENFORCES A MULTIPARTY GOVERNANCE STRUCTURE FOR AUTHORIZING A TRANSACTION AND USER ACCESS CONTROLS.

(f) LOGS EACH USER-INITIATED ACTION.

(g) UNDERGOES REGULAR CODE AUDITS AND PENETRATION TESTING FROM AN AUDITING FIRM, WHICH ENSURES THAT A VULNERABILITY IDENTIFIED BY THE AUDITING FIRM IS PROMPTLY REMEDIED.

(h) IS PROVIDED BY AN ENTITY THAT HAS IMPLEMENTED A DISASTER RECOVERY PROTOCOL TO ENSURE CUSTOMERS HAVE ACCESS TO THE DIGITAL ASSETS IF THE ENTITY IS UNAVAILABLE.

7.

"VIRTUAL COIN" HAS THE SAME MEANING PRESCRIBED IN SECTION 44-1801.

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1649 Sec.

2.

Section 44-308, Arizona Revised Statutes, is amended to read:

44-308.

Payment or delivery of abandoned property;

definitions A.

On filing the report prescribed in section 44-307, the holder of property that is presumed abandoned shall pay, deliver or cause to be paid or delivered to the department the property described in the report as unclaimed.

If the property is an automatically renewable deposit and a penalty or forfeiture in the payment of interest would result, the time for compliance is extended until a penalty or forfeiture would no longer result.

The holder of tangible property held in a safe deposit box or any other safekeeping depository shall deliver the property to the department on filing the report prescribed in section 44-307.

THEIf LISTthe MAYproperty NOTreported INCLUDEto CONFIDENTIALthe INFORMATIONdepartment THATis INCLUDESa THEsecurity NAMESor OFsecurity THEentitlement INDIVIDUALSpursuant ORto BENEFICIARIEStitle WHO47, RECEIVEchapter PUBLIC8, ASSISTANCE.the department may make an endorsement, instruction or entitlement order on behalf of the apparent owner to invoke the duty of the issuer or its transfer agent or the securities intermediary to transfer or dispose of the security or the security entitlement in accordance with title 47, chapter 8.

THEIf DEPARTMENTthe OFholder ECONOMICof SECURITYproperty SHALLreported COMPILEto ANDthe SENDdepartment ALLis DATAthe THATissuer ISof RELATEDa TOcertificated SUBSECTIONsecurity, Athe OFdepartment THIShas SECTIONthe TOright THEto INDUSTRIALobtain COMMISSIONa OFreplacement ARIZONA."certificate Amendpursuant title to conformsection CESAR47-8405, AGUILARbut 1649AGUILARan SE.docxindemnity 03/20/2026bond 12:56is PMnot H:required.

NL/raD. 130HTRWWN

If the property reported to the department is a digital asset, the holder shall report and deliver the digital asset in its native form to the department or the department's designated qualified custodian within thirty days after reporting the property abandoned.

On direction by the department, the qualified custodian may stake to receive rewards or receive airdrops.

On the expiration of three years after the date the digital asset was transferred to the qualified custodian and if the property remains unclaimed, any airdrops or staking rewards shall be transferred to the bitcoin and digital asset ASSETS reserve fund established by section 41-180.

If the holder only possesses a partial private key to the digital asset or is unable to move the digital asset, the holder shall maintain the digital asset until the additional keys required to transfer the digital asset become available.

For the purposes of this subsection, "qualified custodian" means any of the following that is licensed in this state to sell digital assets and offer custody services to customers:

1.

A company.

2.

A federal or state chartered bank.

3.

A trust company.

4.

A special purpose depository institution.

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1649 E.

An issuer, the holder and any transfer agent or other person who acts pursuant to the instructions and on behalf of the issuer or holder in accordance with this section are not liable to the apparent owner and are indemnified against all claims of any person in accordance with section 44-310.

F.

Each month a holder of property reported pursuant to section 44-307, subsection H shall remit the property with the report of property presumed abandoned or other form prescribed by the department.

G.

FOR THE PURPOSES OF THIS SECTION:

1.

"QUALIFIED CUSTODIAN" MEANS EITHER OF THE FOLLOWING:

(a) ANY OF THE FOLLOWING THAT IS LICENSED IN THIS STATE TO SELL DIGITAL ASSETS AND OFFER CUSTODY SERVICES TO CUSTOMERS:

(i) A COMPANY.

(ii) A FEDERAL OR STATE-CHARTERED BANK.

(iii) A TRUST COMPANY.

(iv) A SPECIAL PURPOSE DEPOSITORY INSTITUTION.

(b) A TECHNOLOGY PROVIDER OF A SECURE CUSTODY SOLUTION.

2.

"SECURE CUSTODY SOLUTION" HAS THE SAME MEANING PRESCRIBED IN SECTION 41-181.

Sec.

3.

Legislative findings The legislature finds that:

1.

The digital gold standard benchmark is a standard to provide security and stability in the marketplace.

The digital gold standard benchmark was established when the market valued the first cryptocurrency at $100,000 per coin.

2.

The cryptocurrency fair value metrics form a universal benchmark and not a testimony to any single coin's supremacy.

Like gold's role in 19th century trade, the metrics set a standard for all digital gold blockchain-based coins with decentralized, scarce and transferable attributes.

3.

The cryptocurrency fair value ensures competition is truthful, transparent and fair and evaluates each coin's performance metrics against the digital gold standard benchmark, revealing whether its fundamental measurements support its price or signal overvaluation.

4.

The cryptocurrency fair value model, a cornerstone of informed cryptocurrency investing, calculates a coin's fair market capitalization by comparing its performance and market metrics to the digital gold standard, then drives a per-coin fair value by dividing market capitalization by its circulating supply.

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