Arizona Establishes State Bitcoin Reserve Fund Following Veto of Broader Crypto Bill
Arizona has officially become the second U.S. state to create a government-managed digital asset reserve, after Governor Katie Hobbs signed House Bill 2749 into law.
The new law establishes a Bitcoin and Digital Assets Reserve Fund, which will be overseen by the state treasurer. Unlike previous proposals, however, this fund won’t use taxpayer dollars to invest in Bitcoin. Instead, it will collect unclaimed digital assets, staking rewards, and airdrops—digital assets earned through existing holdings or blockchain activity.
The bill’s passage comes just weeks after Hobbs vetoed a more aggressive crypto proposal, Senate Bill 1025, which would have allowed Arizona to invest up to 10% of treasury and pension funds in Bitcoin and other digital assets. In her veto statement, Hobbs said it would be “inappropriate” to risk public retirement funds on volatile and largely untested digital assets.
Dennis Porter, CEO of the Satoshi Action Fund, said the governor favored HB 2749 due to its budget-neutral design and safer approach to digital asset management. The bill, introduced in February by Representative Jeff Weninger, received bipartisan support.
Under the law, digital assets left unclaimed for three years will be considered abandoned. Any rewards from staking or airdrops tied to these assets will be transferred into the reserve fund. The assets will be managed by qualified custodians, and staking activities may continue to generate returns for the state.
Additionally, the bill ensures that any sales of these assets must occur at market value through established digital exchanges or reasonable commercial methods—especially for less-liquid tokens.
A More Cautious Approach Compared to New Hampshire
While Arizona’s approach is more conservative, it still marks a significant step in integrating digital assets into state finance. By contrast, New Hampshire’s recently passed HB 302 allows its state treasury to directly invest up to 5% of public funds in major digital assets—currently limited to Bitcoin, given its market cap.
Although Arizona’s law doesn’t authorize direct investment, it lays important groundwork for future crypto adoption at the state level.
Featured image from: cryptobriefing.com