- Arizona has passed HB 2749, creating a crypto reserve for unclaimed assets held in native form.
- The law permits staking and airdrop rewards from abandoned crypto to fund a state-managed reserve.
- Governor Hobbs signed the bill after recently vetoing a separate retirement fund bill.
Arizona has passed a law establishing the state’s first crypto reserve, becoming the second U.S. state to formalize such a policy. House Bill 2749 was signed into law by Governor Katie Hobbs on Wednesday. This comes just a few days after the governor vetoed another crypto investment proposal.
The new law does not permit direct investment of state funds into cryptocurrency. It focuses on the unclaimed crypto assets, staking rewards together with airdrops. These assets will now be preserved in their native form and placed into a digital reserve fund.
Law Modernizes Arizona’s Treatment of Abandoned Crypto
The bill, HB 2749, states that if digital assets have been inactive for more than three years, they will be considered unclaimed property. If no activity or communication is recorded during that time, the assets must be transferred to the Arizona Department of Revenue. Unlike previous laws, which would have required liquidation, the state will now hold these assets in their original crypto form.
The law also allows qualified custodians to stake those assets and receive additional earnings. The new crypto reserve fund will hold staking rewards and airdrops generated. That fund cannot be used unless the Arizona Legislature gives further approval.
Sponsor of the bill, Representative Jeff Weninger, termed the measure as a step towards modernizing the state’s financial systems. He said in a statement following the bill’s signing, “This law ensures Arizona doesn’t leave value sitting on the table.”
He added that the approach helps Arizona manage, secure and eventually benefit from abandoned digital assets. Weninger chairs the House Commerce Committee and has long pushed for policies that address digital finance. Arizona is now the first U.S. state to preserve unclaimed cryptocurrency in its original form under the law. Most other states require digital assets to be converted into fiat currency before transferring to state control.
Governor Hobbs rejected the Strategic Bitcoin Reserve Bill
The passage of HB 2749 comes just days after Governor Hobbs vetoed Senate Bill 1025. Under that bill Arizona treasurer and retirement funds would be able to invest up to 10% of their assets in crypto. Citing high volatility and fiduciary risks, Governor Hobbs rejected the proposal.
“Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency,” Hobbs said in her veto message. However, her decision to sign HB 2749 indicates openness to limited, controlled crypto integration into state frameworks.
Another bill, SB 1373, is still awaiting action from the governor. If signed, it would establish a separate reserve from digital assets seized in criminal investigations. That proposal remains under review as other states continue their own crypto policy debates. Just recently, New Hampshire passed a bill approving the state’s ability to invest public funds in Bitcoin and other major digital assets. Meanwhile, efforts in Florida, Oklahoma and several other states have failed before reaching a final vote.
Arizona’s new law positions the state as an early actor in managing crypto assets through legislative channels. It joins a growing list of governments working to define the legal status of digital assets across the U.S.
