Arizona has become one of the first U.S. states to officially enter the digital asset space by legalizing the creation of a state-managed Bitcoin and Digital Asset Reserve Fund. Governor Katie Hobbs signed House Bill 2749 into law on May 7, granting Arizona the authority to take control of unclaimed cryptocurrency if the rightful owner doesn’t respond within three years.

The law enables state custodians to stake abandoned crypto assets or accept airdrops to generate rewards. These proceeds will be directed into the new reserve fund, all without tapping into taxpayer dollars or existing public funds.

According to the bill’s sponsor Jeff Weninger, the legislation is designed to help Arizona “lead the country” in managing lost digital wealth while safeguarding property rights. He emphasized that the bill respects ownership while equipping the state with tools to handle this emerging form of value.

Interestingly, Hobbs had just vetoed a similar bill—Senate Bill 1025—days earlier, citing risks tied to using public funds for speculative investments. However, her approval of HB 2749 now opens the door to broader crypto adoption at the state level.

Crypto advocates are watching closely as Senate Bill 1373 sits on Hobbs’ desk. If signed, it would allow up to 10% of Arizona’s Budget Stabilization Fund to be invested in Bitcoin.

Arizona’s move follows New Hampshire’s recent approval of a similar crypto bill. With Bitcoin being the only cryptocurrency with a market cap above $500 billion, it's currently the sole eligible asset under both states’ laws. The legislative momentum suggests more U.S. states may soon follow.