Arizona has launched its inaugural Bitcoin and Digital Asset Reserve Fund by enacting House Bill 2749. The law does not allow for new investments but concentrates on managing unclaimed digital assets. This development follows New Hampshire's approval of HB 302, making it the first state to establish a Bitcoin reserve fund.

Arizona Governor Katie Hobbs approved HB 2749 after rejecting Senate Bill 1025, the Strategic Bitcoin Reserve Act, due to concerns about the volatility of digital assets and their suitability for state-backed retirement system investments. However, HB 2749 addresses these worries by enabling the state to take possession of abandoned digital assets if the owner does not respond within three years. The assets can be staked or used for airdrops by custodians, and any rewards earned will be transferred to the Bitcoin and Digital Asset Reserve Fund.

Representative Jeff Weninger, the bill's sponsor, highlighted the significance of the law in not leaving value idle and positioning Arizona as a precedent-setter in managing and benefitting from abandoned digital currency. More legislative efforts in Arizona, such as SB 1373 proposing a Digital Assets Strategic Reserve Fund, are currently under review.

Similarly, other states like Texas and Oregon are advancing cryptocurrency legislation, while Florida's Bitcoin Reserve proposals have faced setbacks. These varying scenarios among states illustrate the ongoing debates and challenges in incorporating digital assets into financial systems at the state level.