In a groundbreaking legislative move, Arizona has joined New Hampshire in establishing a Strategic Bitcoin Reserve, following Governor Katie Hobbs’s signing of House Bill 2749 on Thursday. The new law creates the Arizona Bitcoin & Digital Assets Reserve, marking a significant shift in how the state manages unclaimed property by converting profits into Bitcoin and other leading digital assets.
The legislation, spearheaded by Representative Jeff Weninger (R-Chandler), introduces several innovative features that transform the state’s approach to asset management. Under the new framework, profits from unclaimed property will be strategically invested in cryptocurrency, while interest, staking rewards, and airdrops from abandoned property will fund additional acquisitions.
The law implements strict diversification guidelines to ensure Bitcoin complements rather than dominates Arizona’s investment portfolio. Security measures include mandatory U.S.-regulated custody for the assets, and the legislation provides clear protocols for the state to begin acquiring digital assets. Notably, the law includes a provision for native Bitcoin redemption, allowing lost Bitcoin to be returned in its original form rather than dollar equivalents.
Dennis Porter, CEO and Co-Founder of the Satoshi Action Fund, which played a crucial role in advocating for the bill, praised the initiative: “Arizona just showed the country how to turn forgotten assets into a fortress against inflation.” Porter emphasized that the legislation successfully converts inactive dollars into digital assets without impacting taxpayers.
The bill’s journey through the legislative process was aided by cryptocurrency exchange Coinbase, which provided expert testimony that helped lawmakers understand the technical and financial implications of establishing Bitcoin-based reserves. This educational component proved crucial in securing bipartisan support for the initiative.
Representative Weninger, who championed the bill through various legislative stages, highlighted the forward-thinking nature of the law. “Digital assets aren’t the future—they’re the present,” he stated, emphasizing how the legislation positions Arizona at the forefront of digital currency management while protecting property rights and ownership.
The law establishes a framework for handling this emerging asset class within the state’s economy, creating a model that other states might follow. The Satoshi Action Fund’s involvement extends beyond Arizona, having contributed to eight pro-Bitcoin laws nationwide and inspiring over 20 additional legislative initiatives across different states.
This progressive approach to state treasury management demonstrates Arizona’s commitment to financial innovation while maintaining fiscal responsibility. By utilizing otherwise dormant funds, the state has created a potential hedge against inflation without requiring additional taxpayer resources or accessing the general fund.
The legislation represents a careful balance between embracing cryptocurrency’s potential and maintaining prudent financial management practices. Through its detailed implementation steps and strong regulatory oversight requirements, the law provides a structured approach to incorporating digital assets into state reserves while protecting public interests.
The success of this initiative could serve as a blueprint for other states considering similar measures, particularly in how it addresses the technical, financial, and regulatory aspects of managing digital assets at the state level. As more jurisdictions explore
cryptocurrency integration into their financial systems, Arizona’s strategic approach may influence future policy decisions nationwide.