Arizona Governor Katie Hobbs has signed House Bill 2749, making the state the second in the US to create a framework for a Bitcoin and digital asset reserve fund.

The law establishes a budget-neutral approach to managing digital assets that come into state possession.

The move comes days after Hobbs vetoed Senate Bill 1025, which would have allowed investment of up to 10% of treasury and pension assets in digital currencies. She described crypto assets as “untested investments” at the time, drawing the ire of industry proponents.

No Direct Investments

The bill is not as direct as the previous one that Hobbs vetoed. This legislation doesnt allow direct investment, but moves unclaimed assets, airdrops, and staking rewards into a reserve.

However, it shows Governor Hobbs “is willing to enact pro-crypto legislation,” said Bitcoin Laws.

This matters because SB 1373, which is the meaningful Strategic Reserve bill in Arizona, is currently at Governor Hobbs desk awaiting either a signature or a veto, they added.

Arizona Update:

HB 2749 has been signed into law, technically creating AZs first crypto reserve.

It doesnt allow investment, but moves unclaimed assets, airdrops, and staking rewards into a reserve.

IMPORTANT: Shows Gov. Hobbs is willing to enact pro-crypto legislation pic.twitter.com/BeTRdD8GlD

There are a couple more caveats to the legislation. Assets can be actively staked by qualified custodians to generate returns for Arizona. Crypto assets are considered abandoned after three years of inactivity, and the state is prohibited from selling digital assets below market prices.

Representative Jeff Weninger, who introduced the bill, thanked Satoshi Action Fund co-founder Dennis Porter for his work helping get this and other Bitcoin bills to the finish line.

Arizona’s approach differs from that of New Hampshire, which recently authorized direct investment of up to 5% of public funds into cryptocurrencies with market caps exceeding $500 billion, currently only Bitcoin.

The move also comes just days after Florida’s legislature dropped two similar crypto investment bills. Florida’s House Bill 487 and Senate Bill 550 have been “indefinitely postponed and withdrawn from consideration.”

Texas Advances SBR Bill

Texas has also advanced its strategic Bitcoin reserve legislation by passing SB 21 out of the House Committee and to the final floor for a vote before heading to the Governor’s desk.

The bill gives the Texas Comptroller of Public Accounts the authority to acquire, sell, and trade investments, including digital assets.

HUGE: TEXAS JUST PASSED ‘STRATEGIC BITCOIN RESERVE’ OUT OF THE HOUSE COMMITTEE. NOW HEADED FOR FINAL FLOOR VOTE BEFORE GOING TO THE GOVERNOR’S DESK.

Bitcoin prices reacted positively to the news, gaining 2.4% on the day and approaching the $99,000 level, its highest price since late February.