- Arizona passes House Bill 2749, creating a Bitcoin reserve fund with unclaimed digital assets and staking rewards.
- Governor Hobbs vetoes Senate Bill 1025, rejecting Bitcoin investments for pension and treasury funds.
- Arizona’s approach is more passive compared to New Hampshire’s direct investment in Bitcoin reserves.
Arizona has officially signed House Bill 2749 into law, creating a state-managed Bitcoin and Digital Assets Reserve Fund. The state joins New Hampshire in embracing Bitcoin as part of its financial framework. According to a post by Simply Bitcoin on X, Governor Katie Hobbs approved the bill after vetoing a separate proposal that would have allowed the state to invest pension and treasury funds in digital assets.
Key Details of House Bill 2749
House Bill 2749, signed into law by Governor Hobbs, establishes a reserve fund for Bitcoin and other digital assets. The bill directs the state treasurer to oversee the fund, which will consist of assets acquired through unclaimed digital assets, staking rewards, and airdrops. According to the law, these assets can be actively staked by a qualified custodian to generate returns for the state.
The bill also states that any digital assets that remain unclaimed for three years will be deposited into the fund. The law includes provisions for tracking assets, and if an owner fails to demonstrate activity like logging into an account, conducting a transaction, or initiating communication, the assets will be presumed abandoned.
Governor Hobbs’ Veto of Senate Bill 1025
Governor Hobbs vetoed Senate Bill 1025, a separate Bitcoin reserve proposal that would have allowed the state to invest up to 10% of its treasury and pension assets in Bitcoin and other digital assets. In her veto message, Hobbs emphasized that Arizona’s retirement system remains strong by relying on proven investment strategies. She argued that investing pension funds in untested assets like Bitcoin was too risky.
Hobbs made clear that the state’s primary objective was to ensure financial stability, without exposing taxpayer funds or pension savings to the volatility of digital assets.
Comparison with New Hampshire’s Approach
Arizona’s House Bill 2749 goes a bit more conservative than New Hampshire’s House Bill 302, passed this year as well. New Hampshire’s legislation allows the state treasurer to invest up to 5% of public funds into digital assets that have a market cap of $500 billion or more. At present, this is the only criterion that is fulfilled by Bitcoin. New Hampshire’s law allows direct investment in Bitcoin, enabling the state to purchase and hold it as part of its strategic reserves.
In contrast, Arizona’s law does not allow direct investment but focuses on creating a reserve fund through a more passive approach by acquiring unclaimed assets. However, Arizona’s approach is not as proactive as New Hampshire’s. House Bill 2749 marks a significant step by the state in adopting digital assets into its financial system.
Even though the fund’s activities will be less active, it paves the way for the future as far as developments in digital assets are concerned. Arizona’s move follows an increasing trend of states looking for ways to integrate digital assets into their economies. With this new law, the state is ready to compete in the changing arena of digital finance, albeit with a more restrictive approach than other states, such as New Hampshire.
