Nikolas Sargeant
Governor Katie Hobbs has signed groundbreaking legislation allowing Arizona to claim abandoned cryptocurrency after three years of inactivity, creating a self-funding Bitcoin Reserve without using taxpayer dollars.
On May 7, Arizona took a bold step into the digital asset space as Governor Katie Hobbs signed House Bill 2749 into law, establishing clear guidelines for handling unclaimed cryptocurrency. The legislation permits the state to assume ownership of digital assets that remain unclaimed after a three-year period, despite multiple attempts to contact the original owners.
Under the new framework, Arizona can generate additional revenue by staking these unclaimed assets to earn rewards and participate in airdrops. These proceeds will flow into the newly established Bitcoin and Digital Asset Reserve Fund, operating entirely independently from taxpayer contributions or existing state funds.
"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," explained Representative Jeff Weninger, the bill's primary sponsor, in a statement released on May 7.
Weninger emphasized that the legislation creates a balanced approach: "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."
Crypto Legislation Momentum Builds in Arizona
This successful bill follows Hobbs' May 3 veto of a related proposal, Senate Bill 1025, which would have permitted direct investment of seized funds into Bitcoin. The governor cited concerns about allocating public money toward "untested assets" when rejecting that earlier legislation.
Despite that previous veto, cryptocurrency advocates see positive signs in the governor's approval of HB 2749. Julian Fahrer, founder of Bitcoin Laws, expressed optimism on social platform X that Hobbs might now support Senate Bill 1373, currently awaiting her decision. This additional legislation would authorize State Treasurer Kimberly Yee to invest up to 10% of Arizona's Budget Stabilization Fund into Bitcoin.
Arizona's actions reflect a growing trend of state-level cryptocurrency adoption across America. Just one day earlier, on May 6, New Hampshire Governor Kelly Ayotte signed House Bill 302, allowing that state's treasury to invest in cryptocurrencies exceeding $500 billion in market capitalization—a threshold currently met only by Bitcoin.
