Arizona Law Now Manages Unclaimed Digital Assets
Arizona Governor Katie Hobbs has signed a new law that allows the state to take control of unclaimed digital assets. The law, effective after three years of inactivity, was announced on May 7 via the governor’s website.
This legislation, House Bill 2749, updates Arizona’s unclaimed property rules to include cryptocurrencies. Sponsored by House Commerce Committee Chairman Jeff Weninger, it sets up a process for managing these virtual assets. It also creates a Bitcoin and Digital Assets Reserve Fund for future use, with legislative approval.
Weninger stated, “Digital assets are already part of our economy. Our new law protects property rights and helps the state manage this new type of value.”
Under the law, if owners don’t respond to communications for three years, their digital assets are considered abandoned. These assets must then be handed over to the Arizona Department of Revenue in their original digital form.
State custodians can stake these assets or accept airdrops, with the proceeds going to the reserve fund. The fund is managed by the state treasurer and overseen by the legislature. Importantly, it doesn’t use taxpayer money.
This law follows Governor Hobbs’ veto of Senate Bill 1025, which proposed investing seized funds in Bitcoin. The new law focuses on abandoned assets rather of active investments.
Arizona’s move mirrors New Hampshire’s legislation,which allows investment in cryptocurrencies with a market cap over $500 billion,currently only met by Bitcoin.
