Arizona Governor Katie Hobbs signed House Bill 2749 into law on May 7, which would allow the state to claim ownership of abandoned cryptocurrencies if the rightful owners fail to respond to communications within three years.

This move also aligns with the state's vision of creating a Bitcoin Reserve Fund without drawing a single penny from the taxpayer's money or state funds.

How the New Law Works: Protecting Value, Generating Rewards

Under HB 2749, unclaimed digital assets-including cryptocurrencies-must be delivered to the state’s Department of Revenue in their native form.

Qualified custodians are then authorized to stake these assets or receive airdrops, generating rewards that flow directly into the newly established reserve fund. This fund is managed by the State Treasurer and subject to legislative oversight, ensuring transparency and accountability.

State Representative Jeff Weninger stated in a statement that this new legislature would allow the state to utilize all the unused crypto while positioning the state as a pioneer in the way it handles unclaimed digital assets.

"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,

"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."

Despite this progress, not all Bitcoin-focused proposals have succeeded in the state.

Just days before signing HB 2749, Governor Hobbs vetoed a similar bill, Senate Bill 1025-a bill that allows the state to invest seized funds directly into Bitcoin-citing concerns over using public funds for what she called untested investments.

"Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency."

Looking Ahead: Hope for Broader Crypto Adoption in Arizona

The signing of HB 2749 has reignited optimism for other crypto-friendly legislation in Arizona. Bitcoin Laws founder Julian Fahrer noted on X that this move increases the likelihood Governor Hobbs will approve Senate Bill 1373, which would authorize the state treasurer to allocate up to 10% of Arizona’s Budget Stabilization Fund into Bitcoin investments.

This potential shift toward active Bitcoin investment aligns Arizona with other states like New Hampshire, where Governor Kelly Ayotte recently signed House Bill 302.

That law permits the state treasury to invest in cryptocurrencies with a market capitalization exceeding $500 billion-currently only Bitcoin meets this threshold.