Arizona launches its Bitcoin and digital asset reserve fund by signing House Bill 2749, which allows the state to claim abandoned cryptocurrencies and monetize them.
On May 7, Arizona Governor Katie Hobbs signed House Bill 2749 into law, after previously vetoing Senate Bill 1025, known as the Arizona Strategic Bitcoin Reserve Act. In rejecting that proposal, Hobbs had raised concerns about the volatility of digital assets and their unsuitability as an investment for state pension systems. The new HB 2749 takes a more cautious approach, prohibiting the purchase of bitcoin or other cryptocurrencies.
Matthew Sigel, Head of Digital Assets Research at VanEck, commented:
House Bill 2749 amends state statutes to integrate digital assets, including Bitcoin, into Arizona’s financial and unclaimed property frameworks by establishing the Bitcoin and Digital Assets Reserve Fund.
The new law allows the state to claim ownership of “abandoned” digital assets if the owner fails to respond to notifications within three years. Once the state takes control of these assets, its custodians can stake the cryptocurrencies to generate yields or receive airdrops.
All proceeds from staking and airdrops will be transferred to the new Bitcoin and Digital Assets Reserve Fund, enabling the state to manage these unclaimed assets and related revenues without additional risk to taxpayers.
Representative Jeff Weninger, who sponsored the bill, stated:
“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. It’s exactly the kind of policy we should be leading on—modern, precise, and built with an understanding of where technology and finance are heading.”
Arizona’s legislative efforts in this area aren’t limited to HB 2749. Two additional bills, SB 1373 and HB 2324, are currently under review. SB 1373 proposes a Strategic Reserve Fund for Digital Assets, to be managed by the State Treasurer. The fund would include appropriated funds and seized digital assets, which would be held by a qualified custodian. The proposal would allow the state to invest up to 10% annually and lend digital assets to generate returns. Meanwhile, HB 2324 — which aimed to create a reserve specifically for confiscated digital assets — failed its final reading on May 7 but remains subject to a motion for reconsideration.
