On May 7, 2025, Arizona Governor Katie Hobbs signed House Bill 2749, allowing the state to convert unclaimed assets into cryptocurrency reserves.
New Crypto Asset Law in Arizona
The signing of House Bill 2749 by Governor Katie Hobbs marks a shift in Arizona's crypto asset policy. Arizona will use unclaimed property like dormant bank accounts to create digital reserves. Governor Katie Hobbs stated, "The reserve is not used for investment, but instead receives unclaimed virtual assets, airdrops, and staking rewards and keeps them stored..." Representative Jeff Weninger spearheaded this initiative, aiming at innovative management of digital assets.
Potential for State Cryptocurrency Use
The conversion to cryptocurrency reserves is novel for state funds, drawing attention as a potential model for others. With Bitcoin identified as a key asset, implications for digital asset policies are significant. The law requires using regulated custody services, minimizing risk. Arizona retains the ability to gain yields from digital assets without significant market turmoil, presenting a cautious approach.
Arizona's Unique Asset Management Strategy
Texas set a precedent with digital asset reserves, but Arizona’s approach remains unique with unclaimed property conversion. The measure is watched closely by policymakers nationwide. Experts note Arizona's strategy aligns with cautious public asset management, offering a model amid debates over crypto’s role in public finance.
House Bill 2749 represents a significant step in Arizona's state asset management, potentially leading to changes in how digital assets are approached at the state level.
