TLDR
- Arizona’s HB2749 holds unclaimed crypto assets after three years.
- A Bitcoin Reserve Fund will collect staking rewards and airdrops.
- SB1025 allows Arizona to invest 10% of funds in Bitcoin.
- SB1373 creates a non-lapsing Digital Assets Reserve Fund.
- Governor Hobbs’ approval is pending for both bills.
Arizona has enacted House Bill 2749, making it the first state in the U.S. to hold unclaimed digital assets, such as cryptocurrencies, in their native form. The law, signed by the governor, updates Arizona’s unclaimed property regulations to align with the digital asset economy.
ARIZONA SIGNS STRATEGIC BITCOIN RESERVE INTO LAW! 🇺🇸 pic.twitter.com/xQXsm2fEXQ
— Dennis Porter (@Dennis_Porter_) May 8, 2025
Sponsored by House Commerce Committee Chairman Jeff Weninger, the bill passed both legislative chambers with bipartisan support. Under this legislation, digital assets are classified as abandoned after three years of no contact from the rightful owner. Once deemed abandoned, holders must transfer them to the Arizona Department of Revenue in their original form, not liquidated or converted.
Digital Assets Reserve Fund and Staking Provisions Introduced
HB2749 establishes a Bitcoin and Digital Assets Reserve Fund to hold staking rewards and airdrops received from the state’s qualified custodians. These custodians are authorized to stake digital assets to generate additional value. The fund is managed by the State Treasurer and will require legislative approval for future appropriations.
This approach ensures Arizona protects the value of unclaimed digital assets while creating financial opportunities without imposing new taxes or expanding government scope. The structure is designed to preserve ownership rights and promote accountability in managing blockchain-based value.
New Bills Aim to Establish State-Level Cryptocurrency Investment Framework
Alongside HB2749, Arizona lawmakers have approved Senate Bill 1025 and Senate Bill 1373, both awaiting the governor’s signature. SB1025, named the Arizona Strategic Bitcoin Reserve Act, allows the state to invest up to 10% of its public funds, including those from pensions and the treasury, in Bitcoin. It also permits the state to participate in a federal Strategic Bitcoin Reserve if established by the U.S. Treasury.
SB1373 complements this by creating a Digital Assets Strategic Reserve Fund. This fund would hold assets either appropriated by the legislature or seized in criminal investigations. Unlike typical funds in Arizona, it will not lapse at the end of the fiscal year, allowing long-term digital asset management.
Legislative Approval Awaits Governor’s Decision Amid Budget Tensions
Although both SB1025 and SB1373 passed without amendments, their future depends on Governor Katie Hobbs’ approval. Earlier budget disagreements and political tensions have led to uncertainty. The governor previously indicated she would veto bills not already on her desk, citing unresolved funding matters for essential services.
If signed, these bills would position Arizona as a leader in state-level digital asset integration, managing both unclaimed property and strategic investments in cryptocurrency. This legislative package reflects a broader shift towards acknowledging digital assets as a recognized category within public finance.
