Arizona Governor Signs Law to Enable State Ownership of Unclaimed Cryptocurrency
Phoenix, Arizona — Governor Katie Hobbs signed a significant piece of legislation into law on May 7, enabling the state of Arizona to assert ownership over digital assets that remain unclaimed for a period of at least three years. This move is part of a broader strategy to establish a “Bitcoin Reserve Fund,” which will not utilize any state or taxpayer funds.
Key Provisions of House Bill 2749
The new law, known as House Bill 2749, grants Arizona the authority to claim abandoned cryptocurrencies if the owners do not respond to state communications for three years. Under the law, designated custodians within the state will have the ability to stake the unclaimed cryptocurrencies to generate rewards, as well as receive airdrops—additional units of cryptocurrency issued to holders. The earnings from these activities will contribute to the creation of the Bitcoin and Digital Asset Reserve Fund, aimed at maximizing the value of these digital assets for the state.
“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,” stated House Representative Jeff Weninger, the primary sponsor of the bill, in a press release following the signing. Weninger emphasized that the legislation not only protects property rights but also respects ownership while equipping the state with necessary tools to manage a new category of economic value.
Context and Implications
The signing of HB 2749 comes after Governor Hobbs previously vetoed a similar measure, Senate Bill 1025, which sought to allow the state to invest seized funds into Bitcoin. In her veto, Hobbs expressed reservations about leveraging public funds for what she deemed “untested assets.”
The successful passage of HB 2749 may also indicate a potential opening for further cryptocurrency-related legislation within the state. Bitcoin Laws founder Julian Fahrer expressed optimism on social media regarding the possibility of Hobbs signing Senate Bill 1373, which remains under consideration. This proposed bill would empower Arizona’s treasurer, Kimberly Yee, to allocate up to 10% of the state’s Budget Stabilization Fund into Bitcoin.
Meanwhile, Arizona’s legislative actions parallel recent developments in other states. For instance, on May 6, New Hampshire Governor Kelly Ayotte signed House Bill 302, allowing her state’s treasury to invest in cryptocurrencies with a market capitalization exceeding $500 billion, a threshold currently met only by Bitcoin.
Conclusion
With the enactment of House Bill 2749, Arizona becomes one of the few states actively pursuing measures to manage unclaimed cryptocurrencies, signaling a notable shift in how state governments are beginning to view digital assets. As this trend develops, it could set a precedent for other states considering similar legislation and reshape the regulatory landscape for cryptocurrency in the United States.
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