New Law Allows State to Seize Abandoned Digital Assets After Three Years
Arizona has officially entered the crypto policy arena with a bold move. Governor Katie Hobbs signed House Bill 2749 into law on May 7, authorizing the state to take ownership of digital assets abandoned for at least three years. The law aims to create a Bitcoin and Digital Asset Reserve Fund—without relying on taxpayer dollars or state funds.
Under the new legislation, the state may stake unclaimed cryptocurrencies to generate rewards or collect airdrops. These proceeds will go directly into the Reserve Fund, which is designed to manage and benefit from idle digital assets.
“We’re Leading the Way,” Says Bill Sponsor
Arizona House Representative Jeff Weninger, who sponsored the bill, said the measure sets the standard for how states can manage unclaimed crypto. “This law ensures Arizona doesn’t leave value sitting on the table,” Weninger 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.”
Prior Veto Signals Hobbs’ Cautious Approach
Just days earlier, Hobbs vetoed Senate Bill 1025, which would have allowed Arizona to invest seized funds into Bitcoin. She cited concerns about using public money to invest in what she called “untested assets.” However, by signing HB 2749, she’s signaling a willingness to embrace digital assets under tightly controlled conditions.
This recent move has sparked optimism among crypto advocates. Julian Fahrer, founder of Bitcoin Laws, said on X that the signing of HB 2749 increases the likelihood that Hobbs may approve Senate Bill 1373. That proposal, currently awaiting her signature, would allow Arizona’s treasurer to invest up to 10% of the state’s Budget Stabilization Fund into Bitcoin.
Arizona isn’t alone in adopting digital asset strategies. On May 6, New Hampshire Governor Kelly Ayotte signed House Bill 302, giving her state’s treasury the green light to invest in cryptocurrencies with a market cap exceeding $500 billion. As of now, only Bitcoin qualifies.
With HB 2749, Arizona positions itself at the forefront of digital asset governance, combining innovation with fiscal caution.
