In a major step forward for crypto adoption at the state level, Arizona has officially become the second U.S. state to pass legislation enabling the creation of a digital asset reserve — and the move is already sparking praise across the cryptocurrency community.
On May 8, Governor Katie Hobbs signed House Bill 2749 into law, giving Arizona the green light to establish a Bitcoin and digital asset reserve fund. This development comes just days after New Hampshire made headlines for approving a similar law — marking a growing trend in state-level crypto legislation that could ripple across the nation.
“Two states in just two weeks. This isn’t a fleeting trend — it’s real policy now,” said Bitwise CEO Hunter Horsley in a post on X, highlighting the momentum building behind state-level crypto initiatives.
What Does Arizona’s New Law Actually Do?
At the heart of Arizona’s new law is a practical approach to handling unclaimed digital assets. Sponsored by Representative Jeff Weninger, chairman of the House Commerce Committee, the bill outlines procedures for how the state can take custody of digital assets that have been abandoned — typically when owners fail to respond to contact attempts for over three years.
These assets won’t just sit idle, either. Arizona’s new law allows qualified custodians to stake these digital holdings or receive airdrops, with any gains funneled back into what is now officially called the Bitcoin and Digital Asset Reserve Fund.
Weninger described the bill as a proactive move, stating in a press release:
“This legislation ensures Arizona isn’t leaving value on the table. Instead, we’re positioning ourselves as a national leader in how digital assets are managed and monetized when they go unclaimed.”
A Win for Crypto — But Not Without Boundaries
Interestingly, this isn’t Arizona’s first brush with crypto-related legislation — and not all proposals are making it through. Just weeks before signing HB 2749, Governor Hobbs vetoed SB 1025, a bill that would have allowed the state’s treasury and retirement systems to allocate up to 10% of their portfolios into cryptocurrencies like Bitcoin.
In her veto message, Hobbs emphasized her support for fiscal prudence, stating that Arizona’s public retirement funds should continue relying on time-tested investment strategies. While she supports innovation, she made it clear that she believes crypto remains too volatile to form part of retirement portfolios at this stage.
This balanced approach — allowing the state to explore crypto through passive mechanisms like reserves while avoiding direct investment from pension funds — reflects the cautious optimism many lawmakers are showing.
New Hampshire Set the Pace — and Arizona Followed Fast
Just two days before Arizona passed its bill, New Hampshire became the first state in 2025 to create a strategic Bitcoin reserve. Under its new law, the state treasurer is authorized to invest up to 5% of public funds in digital assets with a market cap exceeding $500 billion — a threshold that currently only Bitcoin meets.
These state-level moves come on the heels of a federal-level push by President Donald Trump. In March, Trump signed an executive order calling for the creation of both a Strategic Bitcoin Reserve and a broader Digital Asset Stockpile, signaling a federal interest in securing a foothold in the digital currency ecosystem.
Looking Ahead: Will More States Join the Crypto Reserve Wave?
The passage of reserve-focused crypto legislation in two states in rapid succession could be the spark that ignites broader national action. Several other states are already exploring similar frameworks but have faced bureaucratic or political hurdles.
With both red and blue states now dipping their toes into digital asset strategy, 2025 may mark a tipping point for how U.S. states engage with crypto. Whether motivated by fiscal opportunity, innovation, or long-term resilience, Arizona’s entry into the Bitcoin reserve club signals that digital assets are steadily moving from fringe fascination to foundational finance.
