New Arizona Law Lets State Retain Abandoned Digital Assets

Arizona is changing how it handles unclaimed digital assets, taking a new approach that lets the state hold crypto in its original form rather than converting it to cash.

Good to know

• Digital assets will be treated like stocks—declared abandoned after three years of no activity.
• Arizona can keep crypto uncashed, possibly earning from staking or airdrops.
• A new reserve fund will collect returns from unclaimed digital assets.

Signed into law by Governor Katie Hobbs on Wednesday, House Bill 2749 updates Arizona’s unclaimed property rules to better reflect the digital age. The law requires custodians of digital assets to hand them over to the Department of Revenue if there is no activity or contact from the rightful owner for three years. The state must receive these assets in their original format, rather than as cash.

Representative Jeff Weninger, who chairs the House Commerce Committee, introduced the bill. He pointed out that the new system makes sure Arizona can preserve the full value of these 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,” Weninger said.

Arizona will also establish a reserve account to collect staking rewards, airdrops, and other income tied to these unclaimed assets. The funds from this account can later be used if approved through legislation.

Meanwhile, a separate crypto bill drew a different outcome. A proposal by Senator Wendy Rogers, which aimed to launch a Strategic Bitcoin Reserve funded by seized state assets, did not get the green light. Governor Hobbs vetoed that measure on May 2, citing potential risk. She explained in her veto letter, “Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency.”

Senator Rogers remains committed to the idea and plans to bring the proposal back in a future session.

Arizona is not the only state making headlines. New Hampshire just approved HB 302, which allows up to 5% of state funds to be invested in either precious metals or digital assets. That law, signed by Governor Kelly Ayotte, includes Bitcoin—provided the asset has an average market cap of at least $500 billion.