Arizona Becomes Second U.S. State to Pass Bitcoin Reserve Law

New Law Integrates Crypto Into State Asset Management Framework Arizona has officially passed legislation to create a state-managed Bitcoin and digital assets reserve

Arizona has become the second U.S. state to pass legislation for a state-managed Bitcoin and digital assets reserve, following closely behind New Hampshire.

Governor Katie Hobbs signed House Bill 2749 on Wednesday. The bill integrates cryptocurrency into the state’s unclaimed property system and establishes a crypto reserve fund.

The bill, written by Representative Jeff Weninger, permits the state to hold unclaimed digital assets in their original form and create a crypto reserve fund that can be used for various purposes in the future.

The assets can be staked with qualified custodians to earn staking rewards or airdrops, allowing the state to realize additional potential value without needing to convert the assets to fiat currency.

Crypto Included in Long-Term State Fund

In a statement from Wenerger’s office, the legislation was described as a measure to update Arizona’s financial laws. The reserve fund will be free from any state taxes, and its use will be determined through the state legislature, making it a flexible yet overseen financial instrument.

“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,” Wenerger said.

He also noted the importance of keeping the market value for Arizona residents by avoiding the need to liquidate any digital assets.

More States Setting Sight on Crypto

Arizona’s move follows New Hampshire, which passed similar legislation earlier this week. These laws highlight a growing acceptance among U.S. states toward digital assets as part of their financial systems, especially in areas like unclaimed property, public finances, and reserves.

The development marks another instance of institutional crypto integration at the state level, setting the stage for potentially more states to follow suit with their own frameworks for handling and utilizing digital assets.