Arizona Legislature Approves Bitcoin Reserve and Digital Property Bills: A U.S. First in State-Level Crypto Strategy
Summary
- HB2749 makes Arizona the first state to hold unclaimed crypto assets in their native form
- Establishes a Bitcoin & Digital Assets Reserve Fund to hold staking rewards and airdrops
- SB1025 allows the state to invest up to 10% of public funds in Bitcoin
- SB1373 creates a non-lapsing Digital Assets Strategic Reserve Fund
- Both Senate bills await final approval from Governor Katie Hobbs
Arizona Becomes a Trailblazer in Digital Asset Custody
The Arizona Legislature has taken a historic step toward integrating digital assets into state governance by passing a trio of bills aimed at managing unclaimed cryptocurrencies, investing public funds into Bitcoin, and establishing dedicated blockchain-based reserve funds.
House Bill HB2749, now signed into law, marks the first legislation in the U.S. to allow a state to hold unclaimed cryptocurrencies in their native form, rather than liquidating them into fiat. Sponsored by House Commerce Chairman Jeff Weninger, the bill passed both chambers with bipartisan support, signaling growing political alignment on the role of digital assets in state finance.
Under the bill, any digital asset unclaimed for three years will be classified as “abandoned property” and must be transferred to the Arizona Department of Revenue without conversion.
Staking Rewards and Airdrops to Feed State Reserve
Notably, HB2749 authorizes the creation of a Bitcoin and Digital Assets Reserve Fund, which will collect:
- Staking rewards
- Airdrops
- Other native yields generated by digital asset custodians
These custodians, appointed by the state, may actively stake assets to generate passive value. The fund will be managed by the State Treasurer and can only be appropriated via legislative approval, ensuring accountability and oversight.
Senate Bills Push for Bitcoin Investment and Long-Term Reserves
In addition to HB2749, two Senate bills—SB1025 and SB1373—have passed and await the governor’s signature.
- SB1025: Known as the Arizona Strategic Bitcoin Reserve Act, it would allow the state to invest up to 10% of its public funds, including pensions and treasury balances, in Bitcoin. It also permits participation in a future federal Bitcoin reserve, should the U.S. Treasury establish one.
- SB1373: This bill introduces the Digital Assets Strategic Reserve Fund, a non-lapsing mechanism to hold crypto assets that are:
- Appropriated by the legislature
- Seized in criminal proceedings
- Appropriated by the legislature
The fund’s design avoids the typical end-of-year lapsing of unspent budgets, thereby supporting long-term crypto asset management.
Awaiting the Governor’s Decision
Despite smooth legislative passage, the future of SB1025 and SB1373 now lies with Governor Katie Hobbs, who has signaled she may veto bills not already signed amid broader budget negotiations.
The uncertainty stems from previous disputes over education and healthcare funding. However, if signed, the legislation would place Arizona at the forefront of digital asset policy in the United States—setting a framework for other states to follow.
Final Thoughts
With HB2749 signed and two pivotal Senate bills on the governor’s desk, Arizona is closer than ever to becoming the first state to fully integrate Bitcoin and digital assets into its public finance strategy.
By balancing innovation with public trust, the state is pioneering a model of regulated, accountable crypto engagement that may inspire broader adoption across U.S. states. If the legislation is enacted in full, it could be a defining moment for how governments treat digital property in the decades to come.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
