Arizona Creates Bitcoin Reserve Fund With Unclaimed Digital Assets

Arizona Governor Katie Hobbs has signed House Bill 2749 into law, creating a state-managed Bitcoin and Digital Assets Reserve Fund. This legislation, which passed with bipartisan support, updates Arizona’s unclaimed property statutes to address the rise of digital assets, including cryptocurrencies. The new law establishes a process for identifying and managing unclaimed virtual property, defining digital assets as abandoned if the owner fails to respond to communications over a three-year period. These assets must then be turned over to the Arizona Department of Revenue in their original digital form.

The Bitcoin and Digital Assets Reserve Fund will be managed by the state treasurer and is subject to legislative oversight. The fund does not rely on taxpayer money or state funds; instead, it will be supported by staking rewards and airdropped tokens. This approach ensures that the state has the tools to account for a new category of value in the economy while protecting property rights and respecting ownership.

House Commerce Committee Chairman Jeff Weninger, who sponsored the bill, emphasized the importance of this legislation, stating, “Digital assets aren’t the future—they’re the present.” The law allows the state’s qualified custodians to stake these assets or accept airdrops, with proceeds directed to the new reserve fund. This strategic move positions Arizona as a leader in digital asset management, setting a precedent for other states to follow.

This development comes just days after Governor Hobbs vetoed Senate Bill 1025, which proposed investing seized funds in Bitcoin. The veto was due to concerns over using public funds on “untested assets.” However, HB2749 avoids these concerns by focusing on abandoned assets rather than active investment, ensuring a more cautious and strategic approach to digital asset management.

Arizona’s move follows similar legislation in other regions, where states are increasingly permitting investment in cryptocurrencies. This new law marks a significant step in the state's financial strategy, allowing the treasurer to allocate up to 10% of the state's Budget Stabilization Fund to Bitcoin. By taking control of unclaimed digital assets, Arizona aims to prevent Bitcoin from being lost or misused, thereby securing the state's financial interests.

The establishment of this reserve fund reflects the growing acceptance and integration of digital currencies into mainstream financial systems. The fund will consist of various digital assets, including airdrops and staking rewards, providing a comprehensive approach to managing cryptocurrencies. This bold move positions Arizona as a leader in digital asset management, sending a clear message to other regions about the potential of digital currencies.