Arizona Bitcoin Reserve Fund launches with HB 2749 unlocking crypto rewards

Key Points

• Arizona Bitcoin Reserve Fund launches with HB 2749 unlocking crypto rewards
• Arizona launches Bitcoin Reserve Fund via HB 2749
•  Focus on managing unclaimed digital assets for staking rewards
•  Governor vetoed broader investment bill over volatility concerns
• Other states like Texas and Oregon push crypto legislation forward

Arizona has taken a bold step into the world of crypto finance. On May 7, Governor Katie Hobbs signed House Bill 2749, officially creating the Arizona Bitcoin Reserve Fund. This groundbreaking initiative allows the state to manage unclaimed digital assets like Bitcoin (BTC) and other cryptocurrencies, earning rewards through staking and airdrops.

Unlike earlier proposals, HB 2749 does not permit new investments of public funds into crypto. Instead, it focuses solely on utilizing abandoned or unclaimed digital assets. If owners don’t claim their digital assets within three years, the state can take custody. Once under state control, these assets can generate income through staking or by receiving airdropped tokens.

“Arizona isn’t letting valuable digital assets go to waste. We’re leading the nation in how we manage and benefit from abandoned crypto,” said Representative Jeff Weninger, who sponsored the bill.

The move follows Governor Hobbs’ veto of Senate Bill 1025, the Arizona Strategic Bitcoin Reserve Act. That earlier bill proposed allowing public funds and seized crypto to be invested directly into Bitcoin. Hobbs cited concerns over crypto’s volatility and unsuitability for long-term retirement systems. However, HB 2749 addressed those concerns by focusing only on existing, unclaimed digital assets—minimizing financial risk to taxpayers.

Matthew Sigel, Head of Digital Assets Research at VanEck, commented, “HB 2749 is a smart compromise. Arizona can benefit from staking rewards without risking new public funds.”

🚨 Days after vetoing SB 1025, which would have let Arizona invest public funds & seized crypto into Bitcoin, Gov. Katie Hobbs (D) signs HB 2749, a scaled-down version that funds a BTC reserve using unclaimed crypto, airdrops, and staking rewards.

Great achievement 👏 https://t.co/moKlOnhB8z

— matthew sigel, recovering CFA (@matthew_sigel) May 8, 2025

For those interested in the secure management of crypto assets, Arizona’s approach mirrors the importance of crypto custody services, which are critical for safeguarding digital assets against loss or theft.

Other states follow Arizona’s lead in Bitcoin reserve initiatives

Arizona isn’t alone. Several U.S. states are now working on legislation to integrate crypto into public finance.

Texas recently passed the Strategic Bitcoin Reserve Bill (SB 21) in the Senate. It’s now headed for a floor vote. Julian Fahrer, founder of Bitcoin Laws, noted, “Texas’s Bitcoin Reserve bill could become law within weeks.”

Texas Bitcoin Reserve should be one vote away.

TX legislature adjourns on 6/2, so we should should know within ~3 weeks at the latest. https://t.co/iytSSNrWmo

— Julian Fahrer (@Julian__Fahrer) May 8, 2025

Oregon has also advanced crypto legislation. Governor Tina Kotek signed SB 167 into law, updating the state’s Uniform Commercial Code to clarify how digital assets like Bitcoin are treated legally. This legal clarity paves the way for broader adoption and financial innovation.

New Hampshire was the first to take action, passing HB 302 to create a Bitcoin reserve.

OREGON Update:

Huge win in OR today, as SB 167 was signed into law.

The bill updates the state’s Uniform Commercial Code to provide much needed clarity on how digital assets are treated e.g. legally recognized as collateral.

Big milestone for adoption. pic.twitter.com/aTzbwgwIyw

— Bitcoin Laws (@Bitcoin_Laws) May 8, 2025

However, not every state is moving forward smoothly. In Florida, Bitcoin Reserve proposals HB 487 and SB 550 stalled, showing the challenges that remain in balancing innovation with regulation.

Back in Arizona, lawmakers are considering even more crypto-forward legislation:

• SB 1373 proposes a Digital Assets Strategic Reserve Fund, allowing the state to manage appropriated funds and seized digital assets. It would permit up to 10% annual investment and lending of these assets.

• HB 2324 aimed to create a reserve for forfeited digital assets but failed its final reading. However, it may still be reconsidered.

As more states explore crypto reserves, Arizona’s pragmatic approach—focusing on unclaimed assets and low-risk income strategies—may serve as a model.

Crypto market momentum boosts state-level initiatives

Arizona’s timing couldn’t be better. The broader crypto market has been surging, boosting optimism around state-level Bitcoin reserves.

Bitcoin has seen a 31.8% surge this month, bringing the much-anticipated $100K rally within reach. This rapid growth makes staking rewards and airdrops even more valuable for government reserve funds.

Political figures are also taking note. Donald Trump’s crypto profits have captured headlines, showing how even high-profile leaders are engaging with digital assets.

Additionally, crypto’s cultural influence continues to grow. Elon Musk’s meme coin influence has reshaped retail interest in niche tokens, while regulatory conversations around XRP price suppression highlight the complex intersection of law and market behavior.

This confluence of legal clarity, political engagement, and market momentum is pushing U.S. states to innovate—and Arizona’s Bitcoin Reserve Fund is now leading that wave.