Arizona has officially become the second U.S. state to establish a framework for a strategic Bitcoin reserve, following Governor Katie Hobbs’ signing of House Bill 2749 into law on Wednesday. The legislation creates a state-managed Bitcoin and Digital Assets Reserve Fund, positioning Arizona alongside New Hampshire in what appears to be a growing movement of states embracing cryptocurrency as part of their financial strategy.
JUST IN: 🇺🇸 Arizona enacts new law to establish a Strategic #Bitcoin Reserve. pic.twitter.com/QiljmKTtDx
— Bitcoin Magazine (@BitcoinMagazine) May 8, 2025
What the New Law Does
House Bill 2749, which received bipartisan support in the Arizona Legislature, establishes a reserve fund that will hold unclaimed digital assets that have been abandoned for at least three years, along with any staking rewards and airdrops those assets generate. The bill was introduced in February by Representative Jeff Weninger.
“Digital assets aren’t the future—they’re the present,” said Chairman Weninger in a press statement. “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.”
Unlike direct investment strategies, HB 2749 is designed to be budget-neutral, requiring no taxpayer funding. Instead, it leverages existing unclaimed property laws and extends them to digital assets.
Key provisions of the law include:
- Digital assets will be presumed abandoned after three years of inactivity
- The state treasurer will oversee the reserve fund
- Assets may be actively staked by qualified custodians to generate returns
- Staking rewards earned on unclaimed digital assets will be deposited into the new fund
- The bill prohibits the state from selling digital assets below prevailing exchange prices
- Sales would be conducted via recognized digital asset exchanges or by commercially reasonable methods for less-liquid tokens
A More Cautious Approach After Recent Veto
The signing of HB 2749 comes just five days after Governor Hobbs vetoed Senate Bill 1025, a more aggressive cryptocurrency bill that would have allowed the state to invest up to 10% of treasury and pension assets in digital assets like Bitcoin. In her veto message, Hobbs expressed concern about exposing the state’s retirement funds to what she called “untested investments.”
“Arizona’s retirement funds are not the place for the state to try untested investments like virtual currency,” Hobbs wrote in her veto letter to the Arizona Senate.
Dennis Porter, CEO of Satoshi Action Fund, noted that of all the crypto proposals presented to Hobbs, House Bill 2749 stood out as her preferred option due to its budget-neutral design.
How Arizona’s Approach Differs from New Hampshire
While both states have now passed Bitcoin reserve legislation, their approaches differ significantly:
- New Hampshire’s HB 302: Signed into law on Tuesday by Governor Kelly Ayotte, this legislation authorizes the state treasurer to allocate up to 5% of public funds into digital assets with a market capitalization exceeding $500 billion—currently only Bitcoin. This allows for direct investment of state funds.
Also Read: New Hampshire Makes History as First US State to Enact Strategic Bitcoin Reserve Law
- Arizona’s HB 2749: Takes a more passive approach by creating a reserve from unclaimed digital assets rather than directly investing state funds. It focuses on managing abandoned assets and harvesting staking rewards.
Growing National Movement
The legislative developments in Arizona and New Hampshire come amid increasing interest in Bitcoin at both federal and state levels:
- President Trump has promised to create a strategic Bitcoin reserve and appointed David Sacks as crypto czar
- The Wisconsin Pension Fund has reportedly added Bitcoin to its portfolio
- Other states including North Carolina and Texas are reportedly considering similar legislation
- SB 1373, another Arizona bill that would allow the state treasurer to allocate up to 10% of Arizona’s Budget Stabilization Fund to Bitcoin, is still awaiting the governor’s decision
Market Impact
Bitcoin’s price has responded positively to these developments, trading above $98,500 on Wednesday after closing above $97,000 on Tuesday. The cryptocurrency recently broke another all-time high for the third week in a row, with some analysts suggesting the movement toward government adoption is contributing to the price surge.
“Second state in two weeks. Not a fickle decision. A law. Bitcoin is entering the mainstream,” commented Bitwise CEO Hunter Horsley.
Former Binance CEO Changpeng Zhao added, “You can buy while governments are buying or after they have bought.”
Looking Forward
While Arizona’s approach is more conservative than New Hampshire’s direct investment strategy, the legislation still represents a significant milestone in cryptocurrency adoption. By establishing a legal framework for digital asset management, Arizona has positioned itself at the forefront of what appears to be a growing trend of state-level cryptocurrency integration into public finance.
As more states consider similar legislation, the movement toward government adoption of Bitcoin and other digital assets could mark a pivotal moment in cryptocurrency’s evolution from a speculative investment to a recognized component of public financial strategy.
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