Arizona and Oregon Embrace Bitcoin and Digital Assets in Landmark Legislation
Two US states, Arizona and Oregon, have made significant strides in incorporating Bitcoin and digital assets into their public policy framework. On May 7, both states passed laws that showcase a growing acceptance of cryptocurrency at the state level.
Arizona has taken a pioneering step by launching the Digital Asset Reserve, a state-run fund dedicated to Bitcoin and other digital assets. This initiative was made possible through the passing of House Bill 2749, which was signed into law by Governor Katie Hobbs on May 7. The legislation allows the state to claim ownership of abandoned digital assets that have been inactive for three years. These assets can then be staked or used to receive airdrops, with the proceeds being deposited into the reserve.
Jeff Weninger, Chair of the House Commerce Committee, emphasized that the aim of the measure is to ensure that Arizona can capture value from forgotten digital currencies while respecting ownership rights. He highlighted the importance of adapting to financial innovation and integrating digital assets into the state’s economy. Weninger stated, “Digital assets aren’t the future—they’re the present…We’ve built a structure that protects property rights, respects ownership, and gives the state tools to account for a new category of value in the economy.”
The passage of House Bill 2749 has generated optimism among crypto advocates, especially as Senate Bill 1373 awaits the governor’s decision. This bill would allow the state treasurer to allocate up to 10% of Arizona’s Budget Stabilization Fund into Bitcoin, creating a strategic hedge for state finances.
In contrast, not all Bitcoin-focused proposals in Arizona have been successful. Governor Hobbs recently vetoed Senate Bill 1025, which would have permitted the state to invest seized funds into Bitcoin due to concerns over volatility and risk. However, State Senator Wendy Rogers has pledged to reintroduce the proposal in a future session.
Meanwhile, Oregon has also made significant progress in recognizing crypto as collateral in financial markets. Through Senate Bill 167, the state has updated its Uniform Commercial Code to classify digital assets like Bitcoin as acceptable collateral in secured lending. This legislative move acknowledges the validity of electronic records, signatures, and blended transactions, providing clarity for institutions utilizing crypto in loans and credit arrangements.
Market experts believe that Oregon’s updated legislation will reduce uncertainty for financial institutions and encourage the development of asset-backed lending products. This move is expected to boost crypto adoption in Oregon’s financial ecosystem and pave the way for increased blockchain-based commerce.
Overall, the actions taken by Arizona and Oregon signal a growing acceptance and integration of Bitcoin and digital assets into state-level public policy, setting a positive precedent for other states to follow suit.