Arizona Passes Bitcoin Reserve Bill, Becomes Second US State

Arizona has enacted House Bill 2749, a measure that rewrites the state’s unclaimed-property code to cover cryptocurrencies and creates a “Bitcoin & Digital Assets Reserve” funded entirely from abandoned digital holdings. Governor Katie Hobbs’ signature makes Arizona the second state after New Hampshire (whose House Bill 302 became law on May 6) to adopt a statutory framework for holding Bitcoin as part of public reserves, yet the Grand Canyon State is the first to require that unclaimed tokens be transferred to the state “in their native form,” rather than liquidated for cash. Arizona Becomes Second In Bitcoin Race Among US States HB 2749 passed both chambers with bipartisan support and was sponsored by Rep. Jeff Weninger, the Republican chair of the House Commerce Committee. In announcing the law, Weninger framed the legislation as a practical response to an economic reality that has already arrived. “Digital assets aren’t the future—they’re the present,” he 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.” He added that the statute “protects property rights, respects ownership, and gives the state tools to account for a new category of value in the economy.” Under the new statute, a digital asset is deemed abandoned if its owner fails to respond to three years of outreach. Once that threshold is met, the holder must remit the tokens—Bitcoin, Ether or any other cryptocurrency—directly to the Arizona Department of Revenue. The law authorizes qualified custodians to stake proof-of-stake assets, collect airdrops and harvest any other on-chain distributions generated by the unclaimed wallets. All such revenue flows, together with any seized coins whose owners later emerge, are deposited into the Bitcoin and Digital Assets Reserve Fund, an account overseen by the State Treasurer and subject to ordinary legislative appropriation. Nothing in the text permits an appropriation from the state’s general fund or any other taxpayer-supported pool; in that respect, the measure is “budget-neutral,” as its backers emphasize. The nonprofit Satoshi Action Fund, which provided technical assistance during the legislative drafting, hailed the enactment as a blueprint for other jurisdictions. “Arizona just showed the country how to turn forgotten assets into a fortress against inflation,” said Dennis Porter, the group’s chief executive. “With HB 2749, lawmakers converted dormant dollars into digital gold—without touching the taxpayer’s pocket. It’s a win for fiscal responsibility and for every Arizonan who believes in sound money.” Not Like New Hampshire Governor Hobbs’ approval comes four days after she vetoed Senate Bill 1025, a broader proposal that would have allowed the state to deploy existing public funds and seized property into Bitcoin investments. In her veto message, the governor expressed reservations about channeling public money into “untested assets.” The narrower scope of HB 2749—restricted to property that the state already holds in trust for missing owners—apparently addressed those concerns. Observers now turn to Senate Bill 1373, waiting on Hobbs’ desk, which would authorize the Treasurer to allocate up to 10% of Arizona’s Budget Stabilization Fund to Bitcoin. Arizona’s move follows New Hampshire’s entry into the Bitcoin race just one day earlier. Notably, the New Hampshire bill approved a Bitcoin Strategic Reserve allowing the state to invest up to 5% of total funds. At press time, BTC traded at $99,348. Featured image created with DALL.E, chart from TradingView.com Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers. Source: https://bitcoinist.com/arizona-bitcoin-reserve-bill-second-us-state/