Arizona has taken a significant step into the world of digital assets by launching its first Bitcoin and Digital Asset Reserve Fund, following the enactment of House Bill 2749.
This innovative legislation allows the state to manage unclaimed digital assets, such as abandoned cryptocurrencies, airdrops, and staking rewards, rather than investing public funds directly into the volatile crypto market.
Governor Katie Hobbs signed HB 2749 into law on May 7, marking a shift from her previous veto of the more aggressive Strategic Bitcoin Reserve Act, which sought to invest state funds in Bitcoin.
The new law is designed to generate value from idle digital assets without exposing Arizona’s public treasury to financial risks. Under this legislation, the state can claim digital assets that have remained untouched for three years, allowing it to earn staking rewards and receive airdrops. All proceeds generated from these activities will be deposited into the newly created reserve fund.
Rep. Jeff Weninger, the bill’s sponsor, highlighted the innovative nature of this approach, positioning Arizona as a leader in smart cryptocurrency policy while avoiding the inherent volatility associated with direct investments in digital currencies. The law aims to harness the potential of unclaimed digital assets to benefit the state financially.
In addition to HB 2749, other legislative proposals are still being discussed in Arizona.
