ARIZONA MAKES HISTORY WITH FIRST-EVER STATE CRYPTO RESERVE

- Arizona officially became the second U.S. state to create a state-backed cryptocurrency reserve.

- Governor Katie Hobbs signed House Bill 2749 into law, paving the way for Arizona to secure a reserve fund for digital assets, including Bitcoin.

- HB 2749, introduced in February by Representative Jeff Weninger, has garnered bipartisan support for its budget-neutral design.

- The legislation focuses on managing assets acquired through airdrops, staking rewards, and interest, with the oversight of a qualified custodian.

A New Era for Arizona’s Digital Asset Management:

- Under the new law, unclaimed digital assets will be actively staked to generate returns for the state.

- If assets remain unclaimed for three years, the rewards—whether from staking or airdrops—will be transferred into the new reserve fund.

Weninger emphasized the importance of this initiative, stating:

“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.”

A Breakthrough Amidst Challenges:

- Several other attempts at creating state crypto reserves have faltered.

- Florida's proposal to invest in Bitcoin collapsed just weeks ago, and other states like Oklahoma and South Dakota have seen similar failures.

- However, New Hampshire Governor Kelly Ayotte signed HB 302 into law Tuesday, creating the first U.S. Strategic Bitcoin Reserve. The law allows investing up to 5% of public funds in Bitcoin and digital assets.