**Arizona Establishes Strategic Bitcoin Reserve as Second U.S. State**
Arizona has made a significant move in the cryptocurrency landscape by becoming the second state in the United States to establish a Strategic Bitcoin Reserve. On Thursday, Governor Katie Hobbs signed House Bill 2749 into law, officially launching the Arizona Bitcoin & Digital Assets Reserve. This innovative initiative aims to invest profits from unclaimed property into Bitcoin and other leading digital assets.
The newly enacted legislation includes several important features:
– **Investment Strategy**: The bill directs profits from unclaimed property toward Bitcoin and other digital assets.
– **Funding Mechanisms**: It allows the use of interest, staking rewards, and airdrops from abandoned property to finance strategic acquisitions.
– **Diversification Rules**: Strong guidelines ensure that Bitcoin supplements, rather than dominates, Arizona’s investment portfolio.
– **Regulated Custody**: The law mandates that assets be held in custody by U.S.-regulated entities.
– **Implementation Steps**: Clear procedures are outlined for the state to begin purchasing digital assets and accumulating Bitcoin.
– **Native Bitcoin Redemption**: The law allows for the return of lost Bitcoin in BTC instead of U.S. dollars.
This legislation positions Arizona alongside New Hampshire in transforming idle state assets into potentially appreciating stores of value. By utilizing otherwise unused funds, the state is adopting a strategic approach to enhance its treasury without increasing taxes or tapping into the general fund.
Dennis Porter, CEO and Co-Founder of the Satoshi Action Fund, a key advocate for the bill, remarked, “Arizona just showed the country how to turn forgotten assets into a fortress against inflation. With HB 2749, lawmakers converted dormant dollars into digital gold — without touching the taxpayer’s pocket. It’s a win for fiscal responsibility and for every Arizonan who believes in sound money.”
Cryptocurrency exchange Coinbase contributed to the bill’s success by providing expert testimony that clarified the financial and technological implications of Bitcoin-based reserves, helping lawmakers navigate legislative challenges.
Representative Jeff Weninger (R-Chandler), the bill’s sponsor, played a crucial role in guiding the legislation through its various stages, securing bipartisan support for its passage. He stated, “Digital assets aren’t the future—they’re the present. This law ensures Arizona doesn’t leave value sitting on the table and positions us to lead the country in how we secure, manage, and ultimately benefit from abandoned digital currency.”
In conclusion, Arizona’s establishment of a Strategic Bitcoin Reserve marks a pivotal moment in the state’s financial strategy, potentially setting a precedent for other states to follow in leveraging digital assets for economic growth.
**FAQ**
**What is the purpose of Arizona’s Strategic Bitcoin Reserve?**
The Strategic Bitcoin Reserve aims to invest profits from unclaimed property into Bitcoin and other digital assets, enhancing the state’s treasury without raising taxes.
