On May 7th, 2025, Governor Katie Hobbs signed House Bill 2749 (HB 2749) into law, giving the state government the authority to invest in Bitcoin and other major cryptocurrencies using proceeds from unclaimed property.
The newly signed law allows Arizona to convert profits from unclaimed assets, such as forgotten bank accounts, unused gift cards, uncashed checks, and other dormant financial instruments, into Bitcoin (BTC) and other top-tier digital assets. The primary goal is to protect the state’s financial reserves from the long-term risks of inflation while modernizing its investment portfolio.
Unlike many government programs, this initiative does not rely on taxpayer dollars. Instead, it draws from existing state-held assets that would otherwise remain idle. This approach offers a creative and fiscally responsible strategy to embrace the growing role of cryptocurrency in the global economy.
Arizona legislators introduced four separate bills in 2025 related to establishing a Bitcoin Reserve. While Senate Bill 1025 was ultimately vetoed, House Bill 2749 passed both chambers and gained final approval from Governor Hobbs. The legislation is a carefully crafted policy that includes provisions for safety, regulation, and diversification.
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Bitcoin, often referred to as “digital gold,” has emerged as a hedge against inflation and an increasingly popular store of value in the financial world. With governments and institutions around the world exploring central bank digital currencies (CBDCs) and crypto investment strategies, Arizona’s move reflects a proactive response to a rapidly evolving financial landscape.
The timing couldn’t be more relevant. With inflationary pressures affecting state and national budgets, converting unclaimed property into a scarce, decentralized asset like Bitcoin presents an innovative method to preserve and potentially grow state-held value over time.
One of the standout features of HB 2749 is that it does not limit Arizona’s crypto reserve to Bitcoin alone. The legislation allows for investment in a broader range of high-performing digital assets, adding diversity to the state’s digital portfolio.
Arizona is also permitted to earn rewards from these holdings, including:
To ensure maximum security and compliance, these assets must be held through regulated U.S.-based custodians, aligning the initiative with existing financial oversight frameworks.
The successful passage of HB 2749 was largely credited to Representative Jeff Weninger, a longtime advocate for crypto and blockchain technology. Weninger guided the bill through the legislative process, building bipartisan support and collaborating with industry experts.
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Coinbase also played a crucial role by offering expert testimony and strategic guidance during legislative hearings. Their involvement helped shape the bill’s provisions and reassure lawmakers about its feasibility and safeguards.
With Governor Katie Hobbs’ signature, Arizona joins a growing list of jurisdictions recognizing the long-term value of cryptocurrencies, becoming only the second U.S. state to formally adopt a strategic reserve of digital assets.
The new law stands as a model for other states exploring crypto adoption, while also simultaneously reinforcing Arizona’s reputation as a forward-thinking, innovation-friendly state that embraces emerging technologies while protecting public resources.
Arizona’s new Strategic Bitcoin Reserve marks a pivotal moment in the intersection of state finance and decentralized technology. By using unclaimed property to invest in digital assets like Bitcoin, Arizona is building a future-proof financial strategy that avoids reliance on tax revenue while also embracing the growth of the crypto economy.
As the legislation takes effect, all eyes will be on Arizona to see how this innovative policy unfolds. More importantly, anti-crypto proponents will be paying close attention as to whether other states will follow Arizona’s lead.
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