Arizona becomes second US state to enact crypto reserve bill

Quick Take

Arizona has become the second U.S. state to pass a bitcoin reserve bill into law, following in New Hampshire's footsteps earlier this week.

Arizona Governor Katie Hobbs  signed  House Bill 2749 into law on Wednesday, allowing the establishment of a crypto reserve. 

The bill, sponsored by Representative Jeff Weninger, establishes a reserve fund for unclaimed virtual assets that could be tapped for future use pending legislative approval, according to a  statement  released by Weninger's office. It also allows qualified custodians to stake the reserve assets for rewards or airdrops.

Essentially, it enables the integration of crypto assets into Arizona's unclaimed property framework.

"By preserving unclaimed crypto in its native form and creating a Bitcoin and Digital Assets Reserve tax free, we are modernizing our laws to reflect crypto's position as the future of finance and ensuring Arizonans receive the full market value of their assets," Weninger said.

Hobbs' signing of HB 2749 follows  New Hampshire's  approval of a strategic bitcoin reserve bill (HB 302) on Tuesday.

New Hampshire’s HB 302, signed by Governor Kelly Ayotte, authorizes the state treasurer to allocate up to 10% of the general fund and other approved funds into investments in precious metals and digital assets with a market capitalization exceeding $500 billion — a criterion currently met only by Bitcoin.

Meanwhile, another Arizona bill, SB 1373, which would create a strategic reserve from seized digital assets, is now awaiting action from Governor Hobbs, who could either sign or veto the bill. 

Last week, Hobbs  vetoed  a separate bill, SB 1025, which would've allowed the state's treasurer and retirement systems to invest up to 10% of their funds in cryptocurrencies such as Bitcoin.

"Arizonans' retirement funds are not the place for the state to try untested investments like virtual currency," Hobbs said in a  letter  last week explaining the veto.

Beyond New Hampshire and Arizona, multiple states are weighing similar strategic reserve legislation, with North Carolina and Texas emerging as the next most advanced in their efforts, according to  data  from Bitcoin Laws.