👀 Arizona has officially enacted House Bill 2749, establishing a state-managed Bitcoin and Digital Assets Reserve Fund. This legislation positions Arizona as the second U.S. state, following New Hampshire, to integrate digital assets into its financial framework.
Key Highlights:
Reserve Fund Composition: The fund will consist of digital assets acquired through airdrops, staking rewards, and interest. These assets will be managed by the state treasurer and can be actively staked by a qualified custodian to generate returns.
Unclaimed Assets: Digital assets held for three years without activity will be presumed abandoned, with any staking gains or airdrops transferred to the reserve fund.
Asset Management: The legislation prohibits the state from selling digital assets below prevailing exchange prices and mandates that sales be conducted via recognized digital asset exchanges or commercially reasonable methods for less-liquid tokens.
Governor Katie Hobbs signed HB 2749 into law after vetoing a separate bill, SB 1025, which proposed investing up to 10% of public funds into Bitcoin. She cited concerns over exposing the state's retirement funds to untested investments. HB 2749's budget-neutral design and focus on managing unclaimed digital assets made it a more favorable option.
This move signifies Arizona's cautious yet progressive approach to incorporating digital assets into state financial operations.
🔍Cryptocurrency investments carry risks. Therefore, this is not financial advice (No BSH recommendation). Hence please do your own research (DYOR) before making investment decisions. 🚨