Arizona has become the first US state to create a Bitcoin and Digital Asset Reserve Fund after Governor Katie Hobbs signed House Bill 2749 into law on May 7. The law allows the state to claim unclaimed cryptocurrency after three years of no contact with the owner and use it to build a reserve without using taxpayer money or state funds.

The state’s custodians can stake the recovered crypto or collect airdrops with all earnings deposited into the newly established reserve. Bill sponsor Jeff Weninger said this move lets Arizona lead the nation in managing digital assets while protecting property rights and recognizing the growing role of crypto in the economy.

Governor Hobbs’ approval comes just days after she vetoed a similar proposal involving public funds. Her support of HB 2749 now raises hopes she may also approve Senate Bill 1373 which would let the state invest up to 10 percent of its rainy day fund into Bitcoin. Crypto supporters see this as a major step forward.