Governor Hobbs greenlights Arizona’s Bitcoin reserve fund after signing HB-2749 into law

Arizona Governor Katie Hobbs signed House Bill 2749 into law on May 7th, allowing the establishment of a crypto reserve that will not use state funds or taxpayer money. HB2749 updated Arizona’s unclaimed property laws to account for the growing presence of digital assets, including crypto.

Katie Hobbs, the Governor of Arizona, on Wednesday, signed House Bill 2749 into law to allow the establishment of a state-managed Bitcoin and Digital Assets’ Reserve Fund that will hold unclaimed digital assets and staking rewards five days after she vetoed a separate crypto bill (Senate Bill 1025). The reserve will not be used for investment; instead, it will receive unclaimed virtual assets, airdrops, and staking rewards and keep them stored.

Arizona became the second U.S. state to create a formal framework for holding digital assets with the signing. On Tuesday, New Hampshire Governor Kelly Ayotte signed a bill making her state the first to allow the investment of public funds in crypto reserves. 

Hobbs approves Arizona’s digital asset reserve fund legislation with Bitcoin focus 

Gov. Hobbs officially signed Arizona’s HB2749 into law, allowing the state to keep ‘abandoned’ digital assets in their native form and establish a Bitcoin reserve fund. The legislation—championed by House Commerce Committee Chairman Jeff Weninger—passed both chambers of the Legislature with bipartisan support.

HB-2749 updated Arizona’s unclaimed property laws to account for the growing presence of digital assets, including crypto. The law established a clear process for identifying and handling unclaimed virtual property, protecting the value of digital assets held by the state, and creating a reserve fund that may be used for future appropriations with legislative approval.

“This law ensures Arizona doesn’t leave value sitting on the table and puts us in a position to lead the country in how we secure, manage, and ultimately benefit from abandoned digital currency.”

~ Jeff Weninger,  Chairman of the House Commerce Committee

According to Weninger, his Committee had built a structure that protected property rights, respected ownership, and gave the state tools to account for a new category of value in the economy. He also claimed this was exactly the kind of policy AZ should lead on—modern, precise, and built with an understanding of where technology and finance were heading.

Hobbs vetoes SB 1025, allowing retirement funds to invest in crypto

The Arizona Legislature recently approved Senate Bill 1025, which would have allowed the state’s retirement fund to be invested in virtual currencies such as Bitcoin, allowing the state to put as much as 10% of its funds in crypto. However, Hobbs vetoed SB 1025 on May 2nd to preserve the strength of the Arizona State Retirement System (ASRS). She emphasized caution, prioritizing secure investments over integrating crypto into state funds.

Hobbs stated in her veto message that Arizona’s retirement system was strong because it ‘stuck to proven investment strategies.’ She believes exposing the state’s retirement funds to untested investments like digital assets was inappropriate. 

The AZ Governor also issued other rejections on May 2nd, bringing the total number of vetoed bills in 2025 to 75—surpassing the 73 vetoes she issued in 2024. Her record remains the 143 bills she blocked in 2023, which were the most vetoed bills by any governor in Arizona’s history.

SB 1373 is currently at Governor Hobbs’ desk, awaiting either her signature or veto. However, Hobbs’ track record suggests the bill may be headed for the same fate as SB1025. Arizona joined Oklahoma, Montana, South Dakota, and Wyoming, where similar bills failed to advance.

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