Arizona has been actively advancing legislation for a state-level strategic Bitcoin or digital assets reserve, New Hampshire was the first state to enact a Strategic Bitcoin Reserve law in May 2025 (HB 302, signed by Gov. Kelly Ayotte). It allows the state treasurer to invest a portion of public funds up to 5% in Bitcoin and other digital assets.
Arizona followed shortly after as the second state in May 2025 when Governor Katie Hobbs signed House Bill 2749 (HB 2749). This created the Arizona Bitcoin & Digital Assets Reserve, which primarily focuses on:Taking ownership of unclaimed and abandoned digital assets instead of selling them off. Holding Bitcoin and other top-tier digital assets. Capturing staking rewards, airdrops, and interest from those holdings.
Using prudent custody standards (U.S.-regulated). It was described as budget-neutral — no new taxes or direct spending from the general fund. Hobbs signed it just days after vetoing a different, more aggressive crypto bill (SB 1025). Texas quickly became the third and in some views, the most aggressive when it passed and signed its own version in mid-2025, including provisions that allowed actual purchases of Bitcoin with public funds in certain cases.
Arizona lawmakers have continued pushing additional or expanded bills in the 2026 session, such as: SB 1649 and related ones like SB 1042 or SB 1373 — These aim to create or expand a Digital Assets Strategic Reserve Fund using seized and confiscated crypto not just unclaimed property. The state treasurer could hold, manage, potentially invest, or even lend certain digital assets (Bitcoin, stablecoins, etc.) to generate yield.
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These bills have advanced through committees like the Senate Finance passed it earlier in 2026, but as of now they have not fully passed both chambers and been signed into law in the current session. Some similar prior bills were vetoed by Gov. Hobbs over concerns about risk, operations, and volatility. The 2026 bills represent further momentum. States building Bitcoin reserves is part of a broader trend inspired by discussions around a potential U.S. federal Strategic Bitcoin Reserve which has seen proposals but not full enactment yet.
The state-level versions generally start conservatively — focusing on holding seized and unclaimed BTC rather than aggressively buying with taxpayer money — to hedge against inflation and treat Bitcoin as a digital gold treasury asset. Other states are watching closely. It’s a decentralized, bottom-up push for crypto integration into public finance.
Progress in Arizona is real and pro-Bitcoin, but the exact passed status depends on which specific bill they’re referencing. SB 1649 would create a formal Digital Assets Strategic Reserve Fund using seized, confiscated and surrendered crypto including Bitcoin, and others like XRP or even EGLD/ICP in some versions. The treasurer could manage, stake, or lend assets prudently to generate returns, with possible limited public fund allocation.
Diversifies treasury like digital gold as inflation hedge; could provide future revenue or rainy-day funds. But exposes the state to volatility, custody and security challenges, and political risk. Signals mainstream institutional adoption — states treating BTC as a strategic asset rather than just speculative. Reinforces the narrative of Bitcoin as a reserve asset alongside gold. Arizona encourages the 20+ states exploring similar bills.
Could accelerate bottom-up pressure for a stronger federal Strategic Bitcoin Reserve.
Holding seized BTC reduces selling pressure; potential yield generation adds utility. Broader crypto inclusion beyond just BTC could benefit specific altcoins named in bills.