Arizona Governor Katie Hobbs has signed House Bill 2749, which allows the state to establish a reserve fund that holds unclaimed digital assets, airdrops, and staking rewards.
The approval comes days after Governor Katie Hobbs vetoed another crypto bill – the Arizona Strategic Bitcoin Reserve Act (S.B. 1025). This legislation would have allowed the state treasurer and retirement system to invest 10% of available funds in crypto.
“Arizona just showed the country how to turn forgotten assets into a fortress against inflation,” Dennis Porter, CEO of Satoshi Action Fund, said in an announcement.
Governor Hobbs signed House Bill 2749 into law on Wednesday. This marks Arizona the second US state to create a formal framework for holding crypto, after New Hampshire, which enacted legislation to allow government investments in cryptocurrency reserves.
In a separate thread, Porter said that the bill’s budget-neutral feature makes it different from the one previously vetoed. “There were 4 bills. The Gov liked this one the most,” he wrote.
The move is a “win for fiscal responsibility,” he said. Additionally, the state establishes a “forward-thinking, budget-neutral way to future-proof its treasury.”
The bill passed both Legislative chambers the bipartisan support and is championed by House Commerce Committee Chair Rep. Jeff Weninger. “This law ensures Arizona doesn’t leave value sitting on the table and puts us in a position to lead the country in how we secure, manage, and ultimately benefit from abandoned digital currency,” said Rep. Weninger.
Per the official release, assets are left abandoned if the rightful owner fails to respond to communications for three years. Therefore, the state’s qualified custodians are authorized to stake these crypto to earn rewards or receive airdrops.