Arizona recently passed innovative legislation related to cryptocurrencies. On May 7, 2025, Governor Katie Hobbs signed House Bill 2749 (HB 2749), establishing the state's Bitcoin and Digital Assets Reserve Fund. This fund will consist of unclaimed digital assets, such as staking rewards and airdrops, that have remained inactive for three years. These assets may be used to generate additional returns through staking, without involving public resources or retirement funds.

The legislation was well received by cryptocurrency advocates, being seen as a significant step towards integrating digital assets into the state's financial management. Representative Jeff Weninger, the bill's sponsor, emphasized that the law protects property rights and adapts the state to financial innovations.

However, just a few days earlier, Governor Hobbs vetoed Senate Bill 1025 (SB 1025), which would allow the state to invest up to 10% of its reserve and retirement funds in cryptocurrencies like Bitcoin. She justified the veto by stating that the retirement funds of Arizonans should not be exposed to untested investments.

Additionally, the Arizona Senate passed a bill that would allow the state to invest up to 10% of its funds in cryptocurrencies. The proposal is awaiting Governor Hobbs' decision.

With these initiatives, Arizona joins states like New Hampshire in adopting policies that incorporate digital assets into public management. While New Hampshire allows direct investments in Bitcoin, Arizona opts for a more cautious approach, focusing on managing unclaimed digital assets. #TradeStories $USDC