Arizona: 2nd US state with a strategic Bitcoin reserve

The governor of Arizona has signed into law HB-2749, which allows for the creation of a Bitcoin fund using unclaimed digital assets without the investment of public funds. The measure follows New Hampshire and precedes Oregon, which updated its legal framework to recognize crypto assets as collateral.

Recently, Arizona became the second state in the United States to Establish a strategic Bitcoin reserve after the signing of HB-2749 By Governor Katie Hobbs. The bill, passed with bipartisan support, authorizes the state to hold unclaimed crypto assets like Bitcoin, staking rewards, or airdrops after three years of inactivity by their owners and allocate them to a fund managed by the state Treasury.

Unlike previous initiatives vetoed by Hobbs, This mechanism does not use taxpayer money or public funds to acquire cryptocurrencies., but is fueled exclusively by unclaimed digital assets. 

The passage of this legislation comes amid a backdrop of regulatory progress: hours earlier, Oregon updated its Commercial Code to recognize cryptocurrencies as valid securities, while New Hampshire led the state race to adopt Bitcoin reserves, enacting a cryptocurrency investment bill in April.

HB-2749: A legislative model focused on abandoned assets

HB-2749 updates Arizona's unclaimed property code, which previously only covered traditional assets such as bank accounts or stocks. According to the legislation, digital assets will be considered abandoned if there is no movement or communication with their owner for three years.

“Arizona House Bill 2749 amends state statutes to integrate digital assets, including bitcoin, into Arizona’s financial and unclaimed property frameworks by establishing the Bitcoin and Digital Asset Reserve Fund, administered by the State Treasurer.”, explained the Bitcoin Laws platform. 

The approval process for this new law was not without tension. Recently, Governor Katie Hobbs vetoed SB-1025, which sought to invest public funds, including retirement funds, in Bitcoin, citing risks due to market volatility. In contrast, HB-2749 avoids using state money and focuses on assets that would otherwise remain dormant. 

“This law ensures that Arizona leaves no untapped value and positions us as a leader in managing stranded digital currency.”, said Representative Jeff Weninger, one of the main promoters of the initiative.

The state landscape: from New Hampshire to Oregon

New Hampshire marked a milestone by becoming the first US state to create an official Bitcoin reserve through HB-302, which allows up to 5% of certain state funds to be invested in large-cap cryptocurrencies; currently, only Bitcoin meets this criterion. 

State Governor Kelly Ayotte hailed this initiative as a step forward for financial innovation. Meanwhile, Texas and North Carolina are moving forward with similar projects, albeit with specific investment limits. 

In parallel, the state of Oregon modernized its legal framework to recognize digital assets as collateral for loans, laying a solid foundation for the integration of blockchain into its financial system, although it has not yet created a state fund. These moves reflect a growing interest among states in adopting Bitcoin as a strategic asset and strengthening their digital ecosystem.

Certificate

Basic Bitcoin Course

Basic level

Start from scratch in Bitcoin in a clear, easy, safe and quick way. This course is specially designed for beginners practically know nothing about Bitcoin.

FREE 16 lessons (11 videos)

Start now

Arizona passes law protecting mining and blockchain node operations

In addition to HB-2749, Arizona has also passed HB-2342, which prohibits local governments from regulating or restricting the use of "computing power" in residential settings, including mining and operating blockchain nodes. 

This regulation declares that the regulation of this computing power is a "state concern," meaning cities and counties will not be able to impose restrictions on legal activities such as digital asset mining, artificial intelligence, cloud computing, or high-performance scientific research from home. 

The initiative, introduced by Representative Teresa Martínez, seeks to protect user rights and foster technological innovation in the state. Its recent approval and enactment strengthens Arizona's position as a leader in the adoption and favorable regulation of blockchain and cryptocurrency technologies in the United States. 

This law joins a broader set of legislative proposals that include digital assets, aiming to consolidate Arizona's position as a benchmark in the crypto ecosystem nationwide. The passage of this law represents a significant step toward ensuring a uniform and user-friendly regulatory environment for residential blockchain mining and development, limiting the interference of local regulations.

Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.