Compass Investments

– Arizona creates a reserve fund for bitcoins and digital assets by approving Bill 2749. This law gives the state the ability to claim and capitalize on unclaimed cryptocurrency.

On May 7, Arizona Governor Kathy Hobbs signed House Bill 2749 into law after vetoing Senate Bill 1025, known as the Arizona Strategic Bitcoin Reserve Act. In rejecting the proposal, Hobbs expressed concerns about the volatility of digital assets and their inappropriateness for investment in the state’s pension systems. The new law, HB 2749, takes a more conservative approach by prohibiting the purchase of bitcoin or other cryptocurrencies.

Matthew Siegel, head of digital asset research at VanEck, commented.

Days after rejecting SB 1025, which would have allowed Arizona to invest state funds and confiscated cryptocurrency in bitcoin, Governor Katie Hobbs (D) signed HB 2749, a stripped-down version that funds the BTC reserve with unclaimed cryptocurrencies, airdrops, and staking rewards. Bill 2749 amends state law to integrate digital assets, including bitcoin, into Arizona’s financial and unclaimed property system by creating the Bitcoin and Digital Asset Reserve Fund.

The new law allows the state to claim abandoned digital assets if the owner fails to respond to notices for three years. Once the state has control of these assets, its managers will be able to bet on cryptocurrencies for income or ethereum.

All proceeds from staking and airdrops will go into a new Bitcoin and Digital Asset Reserve Fund, allowing the state to manage unclaimed assets and related revenues without additional risk to taxpayers.

This legislation ensures that Arizona does not miss out on the benefits and will allow us to lead the nation in securing, managing and ultimately benefiting from abandoned digital currencies. This is exactly the kind of policy we need to be leaders in – modern, accurate and built with an understanding of where technology and finance are headed.