Arizona Governor Katie Hobbs has signed House Bill 2749, making the state the second in the US to create a framework for a Bitcoin and digital asset reserve fund. This significant legislative action underscores the state’s evolving relationship with cryptocurrency and digital assets.
The newly established law takes a budget-neutral approach to managing digital assets that come into possession of the state. This move follows Governor Hobbs’ recent veto of Senate Bill 1025, which proposed allowing investments of up to 10% of treasury and pension assets in digital currencies. At that time, Hobbs referred to crypto assets as “untested investments,” a stance that sparked considerable backlash from industry supporters.
No Direct Investments
Unlike the previously vetoed legislation, House Bill 2749 refrains from permitting direct investment. Instead, it focuses on utilizing unclaimed assets, airdrops, and staking rewards, directing these resources into a reserve fund. Supporters, including Bitcoin Laws, assert this development indicates that Governor Hobbs is open to implementing pro-crypto legislation.
The importance of this move is further emphasized by the ongoing discussion surrounding SB 1373, another strategic reserve bill that remains at Governor Hobbs’ desk, awaiting her decision on whether to sign or veto it.
Arizona Update:
HB 2749 has been signed into law, technically creating AZ’s first crypto reserve.
It doesn’t allow investment, but moves unclaimed assets, airdrops, and staking rewards into a reserve.
IMPORTANT: Shows Gov. Hobbs is willing to enact pro-crypto legislation pic.twitter.com/BeTRdD8GlD
— Bitcoin Laws (@Bitcoin_Laws) May 8, 2025
The legislation does have certain stipulations. Qualified custodians are permitted to actively stake the assets to generate returns for Arizona. Moreover, crypto assets are deemed abandoned after three years of inactivity, and the state is prohibited from selling digital assets below market prices.
Representative Jeff Weninger, who championed the bill, expressed gratitude to Dennis Porter, co-founder of the Satoshi Action Fund, for his instrumental role in getting this and other Bitcoin-related bills passed.
Arizona’s approach significantly diverges from that of New Hampshire, which has recently authorized direct investment of up to 5% of public funds into cryptocurrencies with market capitalizations exceeding $500 billion, currently limited to Bitcoin alone. This legislative contrast holds weight in the broader national discourse on cryptocurrency regulation.
Notably, the Arizona legislation comes shortly after Florida’s legislature abandoned two similar crypto investment proposals, demonstrating the complex landscape of crypto regulation across different states.
Texas Advances Strategic Bitcoin Reserve Bill
In the spirit of advancing cryptocurrency legislation, Texas is also making strides. The state has recently moved forward with its own strategic Bitcoin reserve legislation, having passed SB 21 out of the House Committee. This bill now awaits a final vote before heading to the Governor’s desk and would empower the Texas Comptroller of Public Accounts to acquire, sell, and trade investments, including digital assets.
HUGE: TEXAS JUST PASSED ‘STRATEGIC BITCOIN RESERVE’ OUT OF THE HOUSE COMMITTEE. NOW HEADED FOR FINAL FLOOR VOTE BEFORE GOING TO THE GOVERNOR’S DESK.
— Dennis Porter (@Dennis_Porter_) May 7, 2025
In response to these developments, Bitcoin prices reacted positively, increasing by 2.4% on the announcement day and nearing the $99,000 mark, which is its highest price since late February.
This legislation is a pivotal moment for Arizona as it navigates the complexities of cryptocurrency management, reflecting a broader trend of states exploring their options in the digital asset space.
