Article Summary
Arizona has enacted House Bill 2749, allowing the state to hold cryptocurrencies from unclaimed property in a dedicated reserve. This move makes Arizona the second state to create a statutory framework for holding Bitcoin as part of public reserves, with unclaimed tokens transferred to the state “in their native form.” The law aims to secure, manage, and benefit from abandoned digital currency, ensuring Arizona doesn’t leave value on the table and protecting property rights.
Original Post
Arizona has enacted House Bill 2749, a measure that rewrites the state’s unclaimed-property code to cover cryptocurrencies and creates a “Bitcoin & Digital Assets Reserve” funded entirely from abandoned digital holdings. Governor Katie Hobbs’ signature makes Arizona the second state after New Hampshire to adopt a statutory framework for holding Bitcoin as part of public reserves, yet the Grand Canyon State is the first to require that unclaimed tokens be transferred to the state “in their native form,” rather than liquidated for cash.
Arizona Becomes Second In Bitcoin Race Among US States
HB 2749 passed both chambers with bipartisan support and was sponsored by Rep. Jeff Weninger, the Republican chair of the House Commerce Committee. In announcing the law, Weninger framed the legislation as a practical response to an economic reality that has already arrived. “Digital assets aren’t the future—they’re the present,” he said.
“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.” He added that the statute “protects property rights, respects ownership, and gives the state tools to account for a new category of value in the economy.”
Under the new statute, a digital asset is deemed abandoned if its owner fails to respond to three years of outreach. Once that threshold is met, the holder must remit the tokens—Bitcoin, Ether or any other cryptocurrency—directly to the Arizona Department of Revenue. The law authorizes qualified custodians to stake proof-of-stake assets, collect airdrops and harvest any other on-chain distributions generated by the unclaimed wallets.
All such revenue flows, together with any seized coins whose owners later emerge, are deposited into the Bitcoin and Digital Assets Reserve Fund, an account overseen by the State Treasurer and subject to ordinary legislative appropriation. Nothing in the text permits an appropriation from the state’s general fund or any other taxpayer-supported pool; in that respect, the measure is “budget-neutral,” as its backers emphasize.
The nonprofit Satoshi Action Fund, which provided technical assistance during the legislative drafting, hailed the enactment as a blueprint for other jurisdictions. “Arizona just showed the country how to turn forgotten assets into a fortress against inflation,” said Dennis Porter, the group’s chief executive. “With HB 2749, lawmakers converted dormant dollars into digital gold—without touching the taxpayer’s pocket. It’s a win for fiscal responsibility and for every Arizonan who believes in sound money.”
Not Like New Hampshire
Governor Hobbs’ approval comes four days after she vetoed Senate Bill 1025, a broader proposal that would have allowed the state to deploy existing public funds and seized property into Bitcoin investments. In her veto mes
What This Means for You
- Practical implication: This legislation could lead to more states exploring options to hold cryptocurrencies from unclaimed property, increasing the visibility and acceptance of digital currencies as legitimate assets.
- Implication with actionable advice: If you own cryptocurrencies, ensure your contact details are updated to avoid the risk of your assets being deemed abandoned and transferred to the state. Stay informed about any changes in your state’s unclaimed property laws.
- Future outlook or warning: The growth of cryptocurrencies as a legitimate asset class might result in more regulatory clarity and oversight, which could impact the way investors and businesses handle digital currencies. Keep an eye on regulatory developments to adapt your strategies accordingly.
Key Terms
- Cryptocurrencies: Digital or virtual currencies that use cryptography for security and are decentralized, operating independently from a central bank.
- Unclaimed property: Property or accounts in financial institutions or companies that have been inactive or dormant for a certain period, usually three years or more, with no contact from the owner.
- Abandoned digital holdings: Cryptocurrencies considered unclaimed property under Arizona’s revised unclaimed-property code.
- Bitcoin & Digital Assets Reserve: A dedicated reserve fund established by Arizona to hold abandoned digital holdings.
- Proof-of-stake: A consensus algorithm used by some blockchains to validate transactions and create new blocks, where validators are chosen based on the number of tokens they hold and are willing to “stake” as collateral.
- Qualified custodians: Financial institutions or organizations authorized to hold and manage digital assets on behalf of others.
- Budget-neutral: A fiscal policy or legislation that does not require additional funding from taxes or other sources, often relying on existing resources.
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