Arizona Passes Law to Establish Bitcoin Reserve Fund

State Governor Katie Hobbs had previously vetoed a slightly different bill that would have allowed state entities to invest up to 10% of their funds in crypto.

Arizona Joins New Hampshire with State Bitcoin Reserve Initiative

Just a day after New Hampshire passed a law allowing the state to purchase bitcoin ( BTC) or any other cryptocurrency that exceeds a $500 million market capitalization, Arizona on Wednesday, followed suit, albeit with a more conservative law that only allows the Grand Canyon State to assume custody of abandoned digital assets in their native form.

In Arizona, unclaimed digital assets held by the state are considered abandoned three years after communication to the owner is deemed undeliverable due to returned physical or electronic mail. In such cases, the state can now transfer those assets into its newly created “Bitcoin and Digital Assets Reserve Fund.”

On May 2, Hobbs vetoed Senate Bill 1025 which would have allowed Arizona state funds to be invested in cryptocurrencies. Hobbs described virtual currencies as “untested investments.” But after receiving yet another proposal, House Bill HB2749, which permits the state to only hold abandoned digital assets in a special fund, Hobbs gave the thumbs up.

“This law ensures Arizona doesn’t leave value sitting on the table,” said Arizona House Republican and Chairman of the Commerce Committee Jeff Weninger in a news release. “Digital assets aren’t the future, they’re the present.”