Key Points
- Arizona becomes the second U.S. state to sign a strategic Bitcoin reserve into law.
- The reserve will be funded using unclaimed assets and staking rewards.
Arizona has followed in New Hampshire’s footsteps, becoming the second U.S. state to establish a strategic Bitcoin (BTC) reserve. This move marks a significant shift from a recent rejection of a similar proposal.
The state had introduced four bills related to establishing a BTC reserve, according to data from Bitcoin Laws. The initial bill, SB 1025, which proposed investing retirement funds into Bitcoin, was denied by Governor Katie Hobbs.
Details of the Approved Bill
However, the approved bill, HB 2749, does not rely on retirement funds. Instead, it proposes utilizing unclaimed assets and staking rewards to fund the reserve. Bitcoin Laws stated, “HB 2749 has been signed into law, technically creating AZ’s first crypto reserve. It doesn’t allow investment, but moves unclaimed assets, airdrops, and staking rewards into a reserve.”
The remaining bills, which include one that proposed building a reserve from forfeited assets (HB 2324), did not pass the final reading. Meanwhile, the final bill, SB 1373, which seeks direct investment into BTC using the state’s resources, is still awaiting Governor Hobbs’ decision.
Reactions to the Law
Matthew Sigel, VanEck’s head of digital assets research, praised Arizona’s move as a ‘great achievement.’ Changpeng Zhao (CZ), the founder of Binance, suggested that the Arizona update should serve as a warning to late BTC buyers. He stated, “You can buy while governments are buying or after they have bought. The “before” option is disappearing.”
In Oregon, the passed bill (SB 167) doesn’t directly address Bitcoin but lays the groundwork for its adoption. With this move, Arizona becomes the second state to enact a strategic BTC reserve into law, and Texas could soon join the list, pending a House vote and the governor’s action.
As of May 2025, nation-states held 2.5% of the total BTC supply, equivalent to 529,705 coins (worth $52.8B), according to Bitbo data. Exchange-traded funds (ETFs) and public companies are currently leading in terms of BTC adoption.
