Arizona’s New Law Allows State to Keep Abandoned Cryptocurrency If Left Untouched for 3 Years

Arizona Takes Control of Unclaimed Crypto With New Law

Arizona has become one of the first US states to officially claim ownership of unclaimed digital assets, following the signing of House Bill 2749 by Governor Katie Hobbs.

This law allows the state to take control of digital assets such as cryptocurrency that have been abandoned for at least three years, paving the way for new state-backed management of unclaimed crypto.

How Arizona's New Law Will Handle Unclaimed Digital Assets

Under this new legislation, the state can claim ownership of digital assets if the owner does not respond to communication attempts for three years.

Once the state takes possession of the unclaimed crypto, it can be staked to earn rewards or collect airdrops.

These profits will be deposited into a newly established Bitcoin and Digital Asset Reserve Fund, designed to handle the state’s growing portfolio of abandoned digital assets.

No Taxpayer Money Used for the Crypto Fund

An important aspect of House Bill 2749 is that it does not involve taxpayer money.

Arizona aims to benefit from the digital assets without putting any financial burden on its citizens.

By staking crypto or collecting airdrops, the state hopes to turn these assets into valuable resources.

Jeff Weninger, the bill's sponsor, stated,

“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.”

Governor Hobbs Takes a Cautious Approach to Public Funds and Crypto

While this move signals Arizona’s willingness to embrace cryptocurrency, it is also a careful approach to the volatile world of digital assets.

Just days before signing HB 2749, Governor Hobbs vetoed a similar proposal—Senate Bill 1025—that would have allowed the state to invest seized public funds into Bitcoin.

She expressed concerns over using public funds for "untested investments like virtual currency" in her veto statement.

However, her approval of HB 2749 shows that she is open to crypto regulations that do not involve risk to taxpayer money.

Bitcoin Reacts Positively to Arizona’s Move

The news of Arizona's new crypto law had an immediate impact on Bitcoin's market performance.

The price of Bitcoin surged to near $100,000, extending its gains from the previous day.

Currently, Bitcoin continues its upward momentum, surpassing the $99,700 mark.

This shift suggests growing optimism around crypto-friendly legislation in the United States.

Arizona and New Hampshire Lead the Way in Crypto Legislation

The recent developments in Arizona come at a time when other states are also exploring ways to integrate cryptocurrency into their financial frameworks.

Notably, New Hampshire passed House Bill 302, which enables the state to invest public funds in digital assets, marking the first such initiative in the US.

This creates a precedent that other states, including North Carolina and Texas, may follow in the coming months.

Will Arizona Move Forward with More Crypto Legislation?

While Governor Hobbs has expressed caution about direct investments in cryptocurrencies, there is hope for further developments in Arizona.

Senate Bill 1373, which is currently on her desk, would allow the state’s treasurer to allocate up to 10% of the state’s Budget Stabilization Fund into Bitcoin.

This bill, if signed into law, could signal a deeper commitment to digital assets and establish Arizona as a leader in the state-backed cryptocurrency movement.

As Bitcoin continues to gain traction in the US, Arizona’s recent legislative actions may be a sign of things to come, with more states potentially adopting similar measures in the future.