Arizona Governor Katie Hobbs has signed a bill into law allowing the US state to keep unclaimed crypto and establish a “Bitcoin Reserve Fund” that won’t use any taxpayer money or state funds.

Hobbs signed House Bill 2749 into law on May 7, which allows Arizona to claim ownership of abandoned digital assets if the owner fails to respond to communications within three years.

The state’s custodians can stake the crypto to earn rewards or receive airdrops, which can then be deposited into what Arizona has called a Bitcoin and Digital Asset Reserve Fund.

“This law ensures Arizona doesn’t leave value sitting on the table and puts us in a position to lead the country in how we secure, manage, and ultimately benefit from abandoned digital currency,” the bill’s sponsor, Jeff Weninger, said in a May 7 statement.

Arizona House Representative Jeff Weninger’s statement on the signing of HB 2749 into law. Source: Jeff Weninger

“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,” Weninger added.

On May 3, Hobbs vetoed a similar Bitcoin (BTC) reserve bill, Senate Bill 1025, which would have allowed the state to invest seized funds into Bitcoin, citing concerns over using public funds for “untested assets.”

Hobbs’ move gives hope for future crypto bills

Bitcoin Laws founder Julian Fahrer said on X that Hobbs’ signing of HB 2749 offers more hope that she may also sign Senate Bill 1373, which is currently on her desk.

Related: Bitcoin bros at ‘the club’ may stop US gov’t from buying BTC — Arthur Hayes

SB 1373 would authorize Arizona’s treasurer, currently Kimberly Yee, to allocate up to 10% of Arizona’s Budget Stabilization Fund into Bitcoin. 

The bill’s passage in Arizona follows New Hampshire Governor Kelly Ayotte on May 6 signing House Bill 302 into law, allowing her state’s treasury to use funds to invest in cryptocurrencies with a market capitalization of more than $500 billion.

Bitcoin is currently the only cryptocurrency that meets that threshold.

Magazine: Crypto wanted to overthrow banks, and now it’s becoming them in stablecoin fight

Binance founder and convicted felon Changpeng Zhao says that he applied for a pardon from US President Donald Trump shortly after denying reports that he was seeking one.

Zhao, also known as CZ, said on a Farokh Radio podcast episode aired May 6 that he “wouldn’t mind” a pardon and that his lawyers have already filed the paperwork on his behalf

“I got lawyers applying,” Zhao said, adding that he submitted the request after Bloomberg and The Wall Street Journal reported in March that he was seeking a pardon from Trump amid discussions of a business deal between the Trump family and Binance.US.

Zhao denied the reports at the time, but said on the podcast that he thought “if they’re writing this article, I may as well just officially apply.”

He added that Trump’s pardon of three BitMEX founders, including Arthur Hayes, also motivated him to submit an application.

Zhao said the application was submitted about two weeks ago.

Changpeng Zhao (right) speaking with Farokh Sarmad (left). Source: Farokh Radio

Zhao said at the time of the Bloomberg and Wall Street Journal reports that “no felon would mind a pardon,” and claimed he is the only person in US history to serve prison time for a Bank Secrecy Act charge.

Zhao pleaded guilty to a money laundering charge in November 2023 as part of a deal Binance reached with US authorities, which saw it pay a $4.3 billion fine, to which Zhao contributed $50 million. He was also forced to step down as CEO.

Zhao was later sentenced to four months in prison and was prohibited from working at Binance as part of his plea deal.

Related: VanEck files for BNB ETF, first in US

According to the US Department of Justice, a pardon would not erase Zhao’s money laundering conviction; however, it could potentially allow him to assume a management or operational role at Binance.US.

Zhao has no plans to return as Binance CEO

While Zhao remains a Binance shareholder, he said in November at Binance Blockchain Week that he has “no plans to return to the CEO position.” 

“I feel the team is doing well and doesn’t need me back,” Zhao said.

Since leaving prison, Zhao has commenced advisory roles in Pakistan and Kyrgyzstan, assisting on matters related to crypto regulation and implementing blockchain solutions.

Magazine: Bitcoiner Adam Back on Blockstream conspiracy theories and Satoshi question

What to know:

Lyn Alden says a weaker dollar is necessary for the US to stabilize its financial system.

Bitcoin and gold are well-positioned to benefit from de-dollarization.

Sovereign wealth funds and various nations are already increasing their Bitcoin exposure as the dollar’s global dominance starts to wane.

The weakening of the US dollar (DXY) is no longer headline news. With mounting disruptions across the US economy, a declining greenback has become part of the backdrop. Since the start of 2025, the US Dollar Index has dropped 11%, now hovering around levels last seen in April 2022. Markets have largely responded with a shrug. After all, in times of deep restructuring, isn’t some dollar weakness to be expected?

The trouble is, this might not be a temporary dip. The dollar’s slide could reflect a deeper, long-term reconfiguration of both the US economy and the global monetary order. In a May 4 newsletter, independent market analyst Lyn Alden made a compelling case: not only is a weaker dollar likely, but it may be necessary. According to Alden, a controlled retreat from dollar hegemony might be one of the few paths left to stabilize an increasingly fragile system. And if the US relinquishes its role at the center of the monetary universe, the world will need alternatives. Neutral assets like gold and Bitcoin could be well-positioned to take on a more central role.

The US and the dollar are in a “long-term transition”

Fractional reserve banking, the system that fiat money relies on, creates money through lending. Each time a bank issues a loan, it expands the supply of broad money, without necessarily creating enough base money to cover the loan principal and its interest. This means that the current financial system relies on continual credit expansion and refinancing to remain solvent.

Today, the US economy holds around $102 trillion in public and private dollar-denominated debt, with another $18 trillion owed by borrowers outside the US And that’s not even counting derivatives, which would push the total much higher. 

Yet only $5.8 trillion in base money actually exists.

“It’s like a game of musical chairs with more than 20 kids for every chair,” Alden writes. “And the music can’t stop for long.”

The US plays a special role in this system. It imports more than it exports, while surplus countries funnel their dollar earnings back into American stocks, bonds, real estate, and private equity. For the $18 trillion in dollar liabilities held abroad, non-US entities hold roughly $61 trillion in US dollar assets. But when dollar liquidity tightens — when the music stops — foreign holders often have to sell those assets to service their debts, which, in turn, threatens US financial stability.

This happened in March 2020, when parts of the Treasury market froze during the peak panic stage of the COVID-19 pandemic. The Fed stepped in, quickly opening emergency swap lines with foreign central banks and printing trillions in base money to re-float the system. That solved the liquidity issue but unleashed inflation, hitting lower-income Americans the hardest.

Combined with decades of industrial decline and widening social gaps, this situation eventually created the political mandate for Donald Trump and his protectionist agenda. However, the tariff shock is unlikely to be successful, Alden argues. The current system implies that the US must run structural trade deficits to provide the global economy with enough dollars to keep the greenback’s dominance. The only way of rebalancing trade flows is through a weak dollar and a step back from monetary hegemony.

As Alden puts it,

“I view the United States and indeed the global financial system as likely beginning a very long-term transition.”

The Bitcoin to DXY relationship

Bitcoin (BTC) and DXY are inversely correlated. When the dollar strengthens, risk-on assets like BTC lose some of their appeal to investors. When the dollar weakens, BTC becomes more attractive not just as a speculative play, but as an alternative currency. In a system where fiat must effectively lose value over time to function, Bitcoin’s fixed supply and monetary neutrality offer a compelling hedge.

Overlaying BTC and DXY charts reveals that major divergences between the two often align with Bitcoin trend reversals. In April 2018 and March 2022, such divergences signaled bear markets, while November 2020 marked the start of a bullish rally. 

In the 2023-2026 cycle, BTC caught up with the DXY in early 2024, and the two moved largely in sync until recently. A clear divergence began at the beginning of April 2025, with the DXY dropping below 100 for the first time in two years. 

If past patterns are any guide, this could signal the start of a new BTC rally. And if the US moves to strategically weaken the dollar in the long term, the impact could extend well beyond Bitcoin’s usual cyclical price action.

DXY vs BTC/USD 1-day. Source: Marie Poteriaieva, TradingView

Related: How much Bitcoin can Berkshire Hathaway buy?

Where to invest in a post-dollar era?

Periods of monetary upheaval are notoriously difficult to navigate. While short-term tactics may differ, longer-term strategies point to neutral, high-quality reserve assets — especially those that stand to benefit structurally from de-dollarization.

Gold fits this bill. So does Bitcoin.

Several sovereign entities are already stockpiling Bitcoin. El Salvador and Bhutan are directly buying and mining BTC. Abu Dhabi’s Mubadala Investment Co. and the US state of Wisconsin’s pension fund have exposure via spot BTC ETFs. A dozen US states hold equity in Michael Saylor’s Strategy, as well as over 13,000 companies and institutions. Even Norway’s sovereign wealth fund, the world’s largest, has Bitcoin exposure through its holdings of Strategy, Mara Holdings, Coinbase, and Riot.

With the dollar retreating from the global financial arena, space will open for other currencies. There are more and more examples of international trade deals settled in yuan, dirham, or other national currencies. Reuters reports that cross-border yuan payments surged to a record in March. The euro is also on the rise, gaining 10% against the dollar since February. This is all the more impressive taking into account that the European Central Bank has been continuously cutting interest rates, which now stand at just 2.5%, far below the Fed’s 4.5%.

The much-debated “de-dollarization” is no longer hypothetical. It’s unfolding in real time. As nations and companies search for stable, neutral alternatives to settle trade and store value, Bitcoin’s borderless and politically neutral nature positions it as a serious contender. 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.