Quick Summary
- Arizona Governor Katie Hobbs signs House Bill 2749, establishing a reserve fund for unclaimed digital assets.
- The law enables the state to hold and stake abandoned crypto assets, turning them into potential revenue.
- Arizona becomes the second U.S. state to formalize crypto holdings after New Hampshire.
- The bill is considered budget-neutral and received bipartisan support.
- It differs from the recently vetoed Arizona Strategic Bitcoin Reserve Act (S.B. 1025).
Turning Forgotten Crypto into State Assets
In a significant move for digital finance policy, Governor Katie Hobbs has signed House Bill 2749, allowing Arizona to take ownership of unclaimed digital assets—including airdrops and staking rewards—for up to three years. After that period, the state’s qualified custodians can stake these holdings to generate rewards, which are then funneled into a newly created reserve fund.
Budget-Neutral and Forward-Thinking
Unlike the vetoed Strategic Bitcoin Reserve Act, which proposed direct investment of public funds into crypto, HB 2749 is designed to be budget-neutral—a key reason it earned Governor Hobbs’ approval.
“There were 4 bills. The Gov liked this one the most,” said Dennis Porter, CEO of Satoshi Action Fund, who championed the initiative. He praised the measure as “a win for fiscal responsibility,” adding:
“Arizona just showed the country how to turn forgotten assets into a fortress against inflation.”
Championing Innovation and Property Rights
The bill’s bipartisan support highlights a growing recognition of digital assets in public finance. Rep. Jeff Weninger, Chair of the House Commerce Committee and a key advocate for the bill, said:
“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.”
Weninger emphasized that the structure of the law not only boosts the state’s financial preparedness but also respects property rights and recognizes digital assets as a legitimate category of economic value.
Arizona Leads the Way—Cautiously
While Arizona passed on the opportunity to directly invest public funds into cryptocurrency, HB 2749 reflects a strategic step forward. By focusing on unclaimed digital assets and implementing a framework for earning rewards through staking, the state is embracing innovation without financial risk.
With this move, Arizona positions itself at the forefront of responsible crypto adoption in government finance—a model other states may soon follow.