- Arizona has become the first U.S. state to retain unclaimed crypto in its native form under House Bill 2749.
- The state’s qualified custodians can stake unclaimed cryptocurrency to earn rewards, which are placed in a newly created Bitcoin and Digital Assets Reserve Fund.
Arizona has taken a pioneering step in the realm of digital asset management. With the enactment of House Bill (HB) 2749, the state will now retain unclaimed cryptocurrency, becoming the first in the U.S. to do so without converting it to cash. This innovative approach aims to secure the value of unclaimed digital property and open new financial channels for state use.
Arizona’s New Approach to Digital Assets
Under HB 2749, digital assets are considered abandoned if owners do not respond to communications for over three years. Once classified as abandoned, these assets must be delivered to the Arizona Department of Revenue in their original, native form. The law passed both legislative chambers with bipartisan support and was led by House Commerce Committee Chairman Jeff Weninger.
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 Rep. Weninger.
He further said that the structure protects property rights, respects ownership, and gives Arizona tools to account for a new category of value in the economy
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.
Dennis Porter, CEO of Satoshi Action Fund, praised the move, stating, “Arizona just showed the country how to turn forgotten assets into a fortress against inflation.” He added that it is a “win for fiscal responsibility,” and establishes a “forward-thinking, budget-neutral way to future-proof its treasury.” Porter also noted that the bill’s budget-neutral feature distinguishes it from a previously vetoed proposal. “There were 4 bills. The Gov liked this one the most,” he wrote.
Governor Hobbs, shortly before signing HB 2749 into law, vetoed Senate Bill 1025, a separate proposal to create a Bitcoin reserve. That bill would have allowed Arizona to allocate up to 10% of its treasury and pension assets to Bitcoin and similar crypto. In her veto message, Hobbs argued that Arizona’s retirement system remains stable because it relies on tested investment strategies, emphasising that digital assets do not currently meet those standards.
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, authorising 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.
The post Arizona Passes Law to Hold Unclaimed Cryptocurrrency, But Rejects Bitcoin Treasury Proposal appeared first on ETHNews.
