Arizona Establishes Strategic Bitcoin Reserve with New Legislation

Arizona Establishes Strategic Bitcoin Reserve with New Legislation

In a landmark move for digital asset adoption, Arizona Governor Katie Hobbs has signed House Bill 2749 into law, paving the way for the establishment of a Strategic Bitcoin Reserve (SBR) in the state.

The newly enacted legislation authorizes Arizona to utilize funds from unclaimed property—assets that have been transferred to state custody after being abandoned by their rightful owners—to invest in Bitcoin. Furthermore, the bill includes provisions to expand the reserve through the collection of airdrops and staking rewards, signaling a forward-looking approach to digital asset management.

The move follows a mixed legislative track record on crypto within the state. Earlier this week, Hobbs vetoed Senate Bill 1025, a more aggressive proposal that would have allowed broader investments of public funds and seized cryptocurrencies into Bitcoin. HB 2749, while more modest in scope, still marks a significant shift and has been broadly welcomed by the crypto community.

Arizona’s progress follows closely behind New Hampshire, which recently became the first state to pass legislation allowing up to 5% of state funds to be invested in Bitcoin. With its new law, Arizona becomes the second U.S. state in as many weeks to embrace Bitcoin at the state level, adding momentum to the trend of governmental crypto adoption.

“This isn’t a fleeting decision—it’s law,” said Bitwise CEO Hunter Horsley. “Bitcoin is entering the mainstream.” Former Binance CEO Changpeng Zhao echoed the sentiment: “You can buy while governments are buying or after they have bought.”

Though HB 2749 is considered a scaled-back version of SB 1025, it underscores a notable shift in political will—even within a Democratic administration—toward recognizing and institutionalizing cryptocurrency’s role in the financial future.