The state of Arizona has signed a law allowing it to claim ownership of digital assets, including crypto, that have been unclaimed for at least three years.
This comes after Governor Katie Hobbs vetoed a separate measure that would have permitted Arizona to invest public funds in digital assets like Bitcoin.
After New Hampshire, Arizona is now the second jurisdiction to pass a crypto bill into law.
Process for Abandoned Digital Assets
Under HB 2749, digital assets are considered abandoned if owners do not respond to communications over a three-year period. Once classified as abandoned, these assets must be delivered to the Arizona Department of Revenue in their original, native form.
This makes Arizona the first state in the U.S. to retain digital assets without converting them to cash, according to state officials. The law passed both legislative chambers with bipartisan support and was led by House Commerce Committee Chairman Jeff Weninger.
Importantly, the law permits the state’s qualified custodians to stake the acquired assets or accept airdropped assets. All such proceeds will be placed into a newly created Bitcoin and Digital Assets Reserve Fund.
The State Treasurer will manage the fund and be subject to legislative appropriations. According to legislative filings, this structure will secure the value of unclaimed digital property while also opening financial channels for state use without introducing new taxes or expanding the size of government.
Governor Blocks Bitcoin Reserve Proposal
Shortly before signing HB 2749 into law, Governor Hobbs vetoed Senate Bill 1025, a separate proposal to create a Bitcoin reserve. The bill would have allowed Arizona to allocate up to 10% of its treasury and pension assets to Bitcoin and similar digital assets.
In her veto message, Hobbs argued that Arizona’s retirement system remains stable because it relies on tested investment strategies. She emphasized that digital assets do not currently meet those standards.
This decision places Arizona in contrast with other states pursuing similar legislation. Hobbs’ office maintained that the financial security of Arizona’s public funds should not be placed at risk through exposure to emerging and volatile asset classes.
Other States Take Divergent Approaches
While Arizona advances a custodial model for unclaimed digital assets, other states navigate different regulatory paths. In New Hampshire, House Bill 302 recently became law. Specifically, it authorizes the state treasury to hold a limited portion of its reserves in crypto assets.
This measure permits the purchase of Bitcoin or other digital currencies with a market capitalization exceeding $500 billion. Currently, Bitcoin is the only asset that qualifies under this threshold.
Meanwhile, Florida has opted to withdraw a related initiative entirely, stepping back from legislative activity around state-held digital assets. In contrast, North Carolina remains engaged in a comparable effort.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
