diff --git a/CHANGELOG.md b/CHANGELOG.md
index cc73ece393..53e075edb1 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -19,11 +19,14 @@ and this project adheres to
 - cosmwasm-vm: Add `Cache::save_wasm_unchecked` to save Wasm blobs that have
   been checked before. This is useful for state-sync where we know the Wasm code
   was checked when it was first uploaded. ([#1635])
+- cosmwasm-vm: Allow sign extension Wasm opcodes in static validation. This
+  allows contracts to be compiled with Rust 1.70.0 and above. ([#1727])
 
 [#1635]: https://github.com/CosmWasm/cosmwasm/pull/1635
 [#1647]: https://github.com/CosmWasm/cosmwasm/pull/1647
 [#1684]: https://github.com/CosmWasm/cosmwasm/pull/1684
 [#1687]: https://github.com/CosmWasm/cosmwasm/pull/1687
+[#1727]: https://github.com/CosmWasm/cosmwasm/issues/1727
 
 ### Changed
 
diff --git a/packages/vm/Cargo.toml b/packages/vm/Cargo.toml
index 59817c55dd..206716f8a7 100644
--- a/packages/vm/Cargo.toml
+++ b/packages/vm/Cargo.toml
@@ -45,7 +45,7 @@ crc32fast = "1.3.2"
 cosmwasm-std = { path = "../std", version = "1.2.7", default-features = false }
 cosmwasm-crypto = { path = "../crypto", version = "1.2.7" }
 hex = "0.4"
-parity-wasm = "0.45"
+parity-wasm = { version = "0.45", features = ["sign_ext"] }
 schemars = "0.8.3"
 serde = { version = "1.0.103", default-features = false, features = ["derive", "alloc"] }
 serde_json = "1.0.40"