Arizona Approves Landmark Crypto Reserve Law For State-Managed Bitcoin Fund

Arizona has officially established a state-managed Bitcoin and Digital Assets Reserve after Governor Katie Hobbs signed House Bill 2749 into law to convert profits from unclaimed financial property into Bitcoin and other digital assets. Arizona Breaks New Ground Arizona has become the second U.S. state to officially create a Strategic Bitcoin Reserve, marking a significant step in the integration of digital assets into public financial management. Governor Katie Hobbs signed House Bill 2749 into law on May 7, 2025, authorizing the establishment of the Arizona Bitcoin and Digital Assets Reserve Fund. The law enables the state to acquire and manage Bitcoin and other top-tier digital assets using proceeds from unclaimed property, without drawing on taxpayer funds. This pioneering initiative reflects a growing recognition of digital assets’ potential role in safeguarding public finances against inflation and economic volatility. From Proposal to Legislation Arizona lawmakers introduced four separate Bitcoin Reserve-related bills during the current legislative session. While Senate Bill 1025 was ultimately vetoed, HB 2749 succeeded in passing both chambers and securing the governor’s approval. The legislation was spearheaded by Representative Jeff Weninger, with crypto exchange Coinbase contributing expert testimony and guidance during its drafting and legislative review process. Governor Hobbs’ endorsement positions Arizona as a frontrunner in the digital asset policy landscape at the state level, further distinguishing it as a proactive jurisdiction within the United States. How the Reserve Will Operate Administered by the Arizona State Treasurer’s Office, the reserve will manage unclaimed digital assets in their original, native forms. Its design deliberately excludes speculative investment activities, instead focusing on the secure custody of assets such as airdrops, staking rewards, and residual balances from abandoned accounts. Profits from unclaimed financial instruments—including dormant bank accounts, uncashed checks, and insurance proceeds—will be converted into Bitcoin and other leading digital assets. The reserve’s holdings will be safeguarded through regulated U.S.-based custody providers, ensuring adherence to security and compliance standards. Crucially, the fund also permits Arizona to accrue passive rewards associated with its digital asset holdings, including interest, staking yields, and airdrops, thereby expanding the state’s financial strategy beyond traditional instruments. Industry and Market Response As of May 8, 2025, market reactions have remained measured, with no official statements issued by major government representatives or notable crypto industry figures. However, industry observers are closely monitoring Arizona’s move, anticipating potential shifts in state-level crypto policy nationwide. A spokesperson for the initiative noted, “Arizona’s Bitcoin and Digital Assets Reserve Fund, created under HB 2749, marks a unique initiative as it is the first state-level fund in the U.S. focused on the custody of unclaimed digital assets in their native forms, rather than participating in speculative investment.” Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice

Source: Crypto Daily