Arizona governor signs law to keep unclaimed crypto

The governor of Arizona has approved a bill that authorizes the state to retain unclaimed cryptocurrency assets.

The law signed by Arizona’s Governor, Katie Hobbs, allows the state to claim digital assets that have gone unclaimed for at least three years.

A provision in the law also allows the state to create a Bitcoin and Digital Asset Reserve Fund, which will accumulate value through staking rewards and airdrops, funded without the use of public tax dollars.

On Wednesday, Arizona Governor Katie Hobbs approved House Bill 2749, which allows the state to claim digital assets, including cryptocurrencies, that have gone unclaimed for at least three years.

Arizona’s custodians can now stake the crypto to earn rewards or airdrops, and they will direct the proceeds into the state’s Bitcoin and Digital Asset Reserve Fund.

“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,” the bill’s sponsor, Jeff Weninger, said in a May 7 statement.

“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,” Weninger added.

Last week, Hobbs vetoed a separate bill, SB 1025, labeling it an “Untested investment.” The bill would have allowed the state’s treasurer and retirement systems to invest up to 10% of their funds in cryptocurrencies such as Bitcoin. However, her signing of HB 2749 has renewed optimism for further cryptocurrency regulation in Arizona.

“Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency,” Hobbs said in a letter last week explaining the veto.

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Bitcoin Laws founder Julian Fahrer commented on X, stating that Hobbs’ approval of HB 2749 offers optimism that Senate Bill 1373, which is still under consideration, might also receive her approval.

If legislators pass SB 1373, it will authorize Arizona’s treasurer, Kimberly Yee, to commit up to 10% of the Budget Stabilization Fund to Bitcoin.

However, following the Arizona bill’s approval, New Hampshire Governor Kelly Ayotte signed House Bill 302 into law on May 6. The law allows the state’s treasury to invest in cryptocurrencies with a market value over $500 billion.

Bitcoin remains the only cryptocurrency that currently meets that market capitalization requirement.