TLDR
- Arizona Governor Katie Hobbs signed House Bill 2749 allowing the state to claim abandoned crypto assets after three years
- The law creates a “Bitcoin Reserve Fund” with no taxpayer money
- Arizona can stake the crypto to earn rewards and receive airdrops
- This follows New Hampshire becoming the first state to establish a strategic Bitcoin reserve
- The move signals growing mainstream acceptance of cryptocurrency at the government level
Arizona has taken a bold step into the cryptocurrency space with Governor Katie Hobbs signing House Bill 2749 into law on May 7, 2025. The new legislation allows the state to claim ownership of digital assets that have been abandoned for at least three years and creates a “Bitcoin and Digital Asset Reserve Fund” that won’t use taxpayer money or state funds.
The law permits Arizona to claim crypto assets if owners fail to respond to communications within the three-year timeframe. The state can then stake these assets to earn rewards or receive airdrops, with proceeds going directly into the newly established reserve fund.
“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 benefit from abandoned digital currency,” said the bill’s sponsor, Representative Jeff Weninger, in a statement following the signing.
Weninger added, “We’ve built a structure that protects property rights, respects ownership, and gives the state tools to account for a new category of value in the economy.”
This legislation comes just days after Governor Hobbs vetoed a similar bill, Senate Bill 1025, which would have allowed the state to invest seized funds into Bitcoin. Her concerns centered around using public funds for what she termed “untested assets.”
States Leading Crypto Adoption
Arizona has become the second U.S. state to establish a strategic Bitcoin reserve, following closely behind New Hampshire. On May 6, New Hampshire Governor Kelly Ayotte signed House Bill 302, allowing the state treasury to invest in cryptocurrencies with a market cap exceeding $500 billion – a threshold currently met only by Bitcoin.
The passage of HB 2749 has generated optimism among crypto advocates that Governor Hobbs might also approve Senate Bill 1373, which currently awaits her decision. This bill would authorize Arizona’s treasurer to allocate up to 10% of the state’s Budget Stabilization Fund into Bitcoin.
Unlike New Hampshire’s approach, which permits direct investment of state funds into Bitcoin, Arizona’s HB 2749 takes a more conservative approach. The new law focuses exclusively on unclaimed property that transfers to state custody and potential earnings from staking and airdrops.
The move has received praise from industry leaders despite being a scaled-back version of earlier proposals. Bitwise CEO Hunter Horsley commented, “Second state in two weeks. Not a fickle decision. A law. Bitcoin is entering the mainstream.”
Former Binance CEO Changpeng Zhao weighed in as well, noting, “You can buy while governments are buying or after they have bought.”
Bitcoin’s price stood at approximately $99,583 at the time of the bill’s signing, hovering near the $100,000 mark it has approached in recent months.
Bitcoin advocate Julian Fahrer expressed hope on social media platform X that Hobbs’ approval of HB 2749 bodes well for the pending SB 1373, which would allow for more direct state investment in cryptocurrency.
The Arizona law specifically outlines provisions for the state to claim crypto assets that have been forgotten by their owners, while also harvesting airdrops and staking rewards to grow the reserve without taxpayer investment.
Arizona’s move into cryptocurrency reserves, even with this cautious approach, represents growing acceptance of digital assets at the state government level. The fact that a Democratic governor approved such legislation suggests bipartisan interest in exploring the potential benefits of cryptocurrency holdings for state treasuries.
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