Arizona has officially enacted House Bill 2749, creating a state-managed Bitcoin and Digital Assets Reserve Fund that will hold unclaimed digital assets and staking rewards. This move makes Arizona the second state in the United States to establish such a framework, following New Hampshire's recent legislation.
Governor Katie Hobbs signed the bill into law on May 7, 2025, just five days after vetoing a separate cryptocurrency bill that would have allowed the state to invest up to 10% of its treasury and pension assets in digital currencies like Bitcoin. In her veto message, Hobbs expressed concerns about the strength of Arizona's retirement system, stating, "Arizona's retirement funds are not the place for the state to try untested investments like virtual currency." This decision reflects a cautious approach to integrating digital assets into state finance.
House Bill 2749, introduced in February 2025 and backed by Representative Jeff Weninger, received bipartisan support. The legislation directs the state treasurer to oversee a reserve fund consisting of digital assets acquired through airdrops, staking rewards, and interest. Notably, any rewards earned on unclaimed digital assets held for three years will be deposited into this new fund.
Under the provisions of the bill, digital assets will be presumed abandoned after three years of inactivity unless the owner takes demonstrable actions like logging into an account or conducting a transaction. This framework aims to ensure that the state can responsibly manage digital assets while protecting the interests of Arizona residents.
Importantly, the bill prohibits the state from selling digital assets below prevailing exchange prices and adds digital assets to Arizona's statutory framework governing the sale of unclaimed property. Sales would be conducted via recognized digital asset exchanges or through commercially reasonable methods for less-liquid tokens.
Arizona's approach, while significant, is considered less aggressive compared to New Hampshire's House Bill 302, which was also signed into law this week. New Hampshire's legislation allows the state treasurer to allocate up to 5% of public funds into digital assets with a market capitalization exceeding $500 billion, effectively enabling the state to purchase and hold Bitcoin as part of its strategic reserves.
Supporters of Bitcoin argue that it represents a new asset class, often referred to as "digital gold," and serves as a store of value amid an ever-increasing supply of global money. They point to Bitcoin's historical price performance and potential as a hedge against inflation. However, detractors caution that Bitcoin remains speculative and volatile, lacking intrinsic value.
The growing acceptance of Bitcoin and other cryptocurrencies at the state level reflects a broader trend of increasing interest in digital assets. With President Trump promising to create a strategic Bitcoin reserve and appointing a crypto czar, states are beginning to explore the potential benefits of integrating cryptocurrencies into their financial frameworks.
As Arizona joins New Hampshire in embracing Bitcoin, it signals a shift in how states view digital assets. The establishment of a Bitcoin and Digital Assets Reserve Fund may pave the way for further developments in cryptocurrency legislation across the country.
In summary, Arizona's House Bill 2749 marks a significant step towards integrating digital assets into state finance. While the state takes a more measured approach compared to New Hampshire, the creation of a reserve fund demonstrates a willingness to explore the potential of cryptocurrencies while maintaining a focus on fiscal responsibility.
