Arizona has passed a groundbreaking law allowing unclaimed cryptocurrency to be held in its original form—marking a first among U.S. states.
New Law Modernizes Crypto Handling in Arizona
Governor Katie Hobbs signed House Bill 2749 into law on Wednesday, officially allowing Arizona to store unclaimed crypto assets in their native form rather than liquidating them. The bill, introduced by House Commerce Committee Chairman Jeff Weninger (R-AZ), updates the state’s unclaimed property regulations to reflect the evolving landscape of digital currencies.
Under the new Arizona crypto law, if an account holder fails to respond or show activity for three years, digital assets like Bitcoin or Ethereum will be considered abandoned. At that point, the assets must be handed over to the Arizona Department of Revenue—still in their original blockchain-based format.
Reserve Fund to Capture Crypto Earnings
The legislation also establishes a reserve fund to collect earnings from these unclaimed digital assets. This includes potential staking rewards and airdrops. Any use of funds from the reserve will require approval from the Arizona legislature.
“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,” said Weninger.
Follows Veto of State-Backed Bitcoin Reserve
HB 2749’s passage comes just days after Governor Hobbs vetoed a separate, more controversial crypto bill. That proposal, championed by State Senator Wendy Rogers (R-AZ), aimed to establish a Strategic Bitcoin Reserve funded by seized state assets. Hobbs rejected the idea on May 2, citing concerns about volatility and financial risk.
“Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency,” Hobbs wrote in her veto letter.
Despite the veto, Senator Rogers has vowed to reintroduce the Bitcoin reserve bill in the next legislative session.
Crypto Legislation Struggles in Other U.S. States
While Arizona is setting the pace, many other states have struggled to push through crypto-focused legislation. Florida’s attempt to allocate up to 10% of select public funds to Bitcoin stalled last week, as both HB 487 and SB 550 were withdrawn before a floor vote.
Similar proposals have also failed in Oklahoma, South Dakota, Montana, North Dakota, Pennsylvania, and Wyoming—often making it out of committee but not reaching final approval.
New Hampshire Makes Quiet Progress
New Hampshire has managed to pass a crypto-forward law. Governor Kelly Ayotte signed HB 302 this week, allowing the state treasurer to invest up to 5% of public funds in either precious metals or digital assets with a minimum average market cap of $500 billion—effectively authorizing Bitcoin for state investment.
