Arizona Enacts House Bill 2749, Making It the First State in the U.S. to Hold Unclaimed Digital Assets

Arizona has enacted House Bill 2749, making it the first state in the U.S. to hold unclaimed digital assets, such as cryptocurrencies, in their native form.

Arizona has become the first U.S. state to explicitly hold unclaimed digital assets, such as cryptocurrencies, in their native form, according to a new law signed by the governor.

The law, House Bill 2749, updates Arizona’s unclaimed property regulations to align with the digital asset economy. It also creates a Bitcoin and digital assets reserve fund to manage any staking rewards or airdrops received by the state.

The bill, sponsored by House Commerce Committee Chairman Jeff Weninger, passed both legislative chambers with bipartisan support.

Digital assets are classified as abandoned after three years of no contact from the rightful owner. Once deemed abandoned, holders must transfer them to the Arizona Department of Revenue in their original form, not liquidated or converted.

This approach ensures Arizona protects the value of unclaimed digital assets while creating financial opportunities without imposing new taxes or expanding government scope. The structure is designed to preserve ownership rights and promote accountability in managing blockchain-based value.

Unclaimed Digital Assets Must Be Transferred in Their Original Form

HB2749 updates the definition of abandoned property to include digital assets. It defines a digital asset as any cryptocurrency, token, or coin that is part of a blockchain or distributed ledger technology network.

Unclaimed digital assets must be transferred to the Department of Revenue in the same form as held by the holder, to be credited to the Unclaimed Property Fund.

The bill also creates the Bitcoin and Digital Assets Reserve Fund to hold any staking rewards or airdrops received by the state from qualified custodians. These custodians are authorized to stake digital assets to generate additional value.

The fund will be managed by the State Treasurer and requires legislative approval for future appropriations.

Lawmakers Approve Bills for Strategic Bitcoin Reserve and Integration Framework

In addition to HB2749, Arizona lawmakers have approved Senate Bill 1025 and Senate Bill 1373, both awaiting the governor’s signature.

SB1025, named the Arizona Strategic Bitcoin Reserve Act, allows the state to invest up to 10% of its public funds, including those from pensions and the treasury, in Bitcoin. It also permits the state to participate in a federal Strategic Bitcoin Reserve if established by the U.S. Treasury.

SB1373, sponsored by State Sen. Wendy Stevens, creates the Digital Assets Strategic Reserve Fund. This fund would hold assets either appropriated by the legislature or seized in criminal investigations. Unlike typical funds in Arizona, it will not lapse at the end of the fiscal year, allowing long-term digital asset management.

This legislation follows a proposal by State Treasurer Kimberly Porter to create a state-level Bitcoin trust fund.

Lawmakers approved both SB1025 and SB1373 without amendments. However, their future depends on Governor Katie Hobbs’ approval. Earlier budget disagreements and political tensions led to the governor indicating she would veto bills not already on her desk with pending funding matters for essential services.

If signed, these bills would position Arizona as a leader in state-level digital asset integration, managing both unclaimed property and strategic investments in cryptocurrency. This legislative package reflects a broader shift towards acknowledging digital assets as a recognized category within public finance.