Arizona is now officially the second state to pass a bill to create a Bitcoin and digital assets reserve, establishing the state as a forerunner amid a new era of crypto legislation.
On Wednesday, Governor Katie Hobbs signed House Bill 2749 into law, a few days after New Hampshire had done the same with a similar bill. Introduced by State Representative Jeff Weninger, sponsored by, HB 2749 establishes a mechanism for unclaimed virtual assets like Bitcoin to be stored within a newly created reserve account.
The bill permits qualified custodians to hold, stake, and even receive airdrops on the assets, subject to legislative approval. This represents a groundbreaking way states handle unclaimed assets by identifying cryptocurrency for what it is – its authentic form.
Bitcoin Reserve Law Follows New Hampshire
Weninger said by keeping unclaimed crypto in its original form and instituting a Bitcoin and Digital Assets Reserve that is exempt from taxes, we are modernizing our legislation to keep up with crypto as the future of finance and to allow Arizonans to get the full market value for their assets.
This new law follows New Hampshire’s House Bill 302, being signed Tuesday by Governor Kelly Ayotte. That bill allows the state treasurer to invest up to 10% of some state funds into assets such as precious metals and cryptocurrencies with a market capitalization of over $500 billion a hurdle only reached by Bitcoin.
Arizona’s Crypto Efforts Face Mixed Outcomes
Arizona House Bill 2749 is less far-reaching than New Hampshire legislation but significantly incorporates crypto assets into state financial channels, especially regarding unclaimed property.
Arizona has gone a step ahead with HB 2749, but other bills regarding cryptocurrency that were introduced within the state have uncertain fates ahead of them. Senate Bill 1373, which is aimed at creating a strategic reserve out of seized cryptocurrencies, continues to await action from Governor Hobbs.
Meanwhile, she recently vetoed Senate Bill 1025 that sought to enable public investing up to 10% of state treasurer and retirement funds into cryptocurrencies. Hobbs said last week in a letter, Arizonans’ retirement savings are the last place the state should be using to experiment with unproven investments such as virtual currency.
Arizona Reflects Broader Crypto Integration Trend
The momentum at the state level is building as digital assets increase mainstream popularity. Policy tracker Bitcoin Laws’ data indicates that both Texas and North Carolina are moving forward with legislation for strategic crypto reserves, a trend that indicates a national push toward mainstream integration of public policy with digital finance.
As regulation continues to adapt, Arizona’s latest action highlights a major shift from state governments not just accepting the financial validity of cryptocurrency but also attempting to leverage its potential for public applications.
Conclusion
As Arizona follows New Hampshire in leading the way with crypto reserve legislation, momentum builds across the nation for bringing state financial systems into line with digital assets. With other states like North Carolina and Texas, meanwhile, making progress on similar legislation, the U.S. could soon witness a national trend toward treating Bitcoin as a strategic public asset.
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FAQs
1. What is Arizona’s Bitcoin Reserve Law?
It creates a state crypto reserve for unclaimed assets and allows staking for rewards.
2. How does it differ from New Hampshire’s law?
Arizona focuses on unclaimed assets; New Hampshire allows direct investment in Bitcoin.
3. Are other states adopting similar laws?
Yes, Texas and North Carolina are advancing similar crypto reserve bills.
Glossary Of Key Terms
Bitcoin Reserve
A state-held fund for Bitcoin and digital assets.
Custodian
A party responsible for managing crypto assets.
Airdrop
Free distribution of cryptocurrency or tokens.
Strategic Reserve
A fund set aside for specific investments, like crypto.
Veto
The governor’s power to reject a bill.
Reference
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