Arizona Establishes Bitcoin Reserve, Following New Hampshire's Lead

Arizona has become the second state in the US to establish a bitcoin reserve, following a similar move by New Hampshire just a week prior. This development marks a significant step in the integration of digital assets into state financial systems. The new law in Arizona ensures that any unclaimed bitcoin or cryptocurrency will not be sold for cash but will instead be held in a state-controlled reserve fund. This fund will also custody other cryptocurrencies handed over to the Arizona revenue department.

State officials are permitted to stake the crypto held by the fund and even collect airdrops, but they are legally prohibited from selling any coins. House Committee Chair Jeff Weninger emphasized the importance of this move, stating, "Digital assets aren’t the future — they’re the present. 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."

The law applies to property for which the state cannot find or contact the original owner for three years, including lost property, forgotten bank accounts, and potentially crypto exchange accounts belonging to the deceased. This approach differs from the US government’s strategic bitcoin reserve, which holds coins seized by criminal forfeiture.

Governor Katie Hobbs vetoed a separate bill that would have permitted the state to invest 10% of its public funds into bitcoin, indicating a cautious approach to direct investment. However, Weninger noted that there are other avenues through which Arizona’s fund can acquire bitcoin without taxpayer money.

New Hampshire's move to invest 5% of all public funds into bitcoin sets a precedent for other states considering similar initiatives. The rapid adoption of bitcoin reserves by multiple US states highlights the growing acceptance and integration of digital assets into mainstream financial practices. This trend suggests that the US is still in the early stages of embracing bitcoin, much like the early days of the printing press, which revolutionized society over centuries.