Arizona Seizes Abandoned Crypto Under New Law Signed by Governor Hobbs

Arizona Governor Katie Hobbs signed House Bill 2749 (HB 2749) into law on May 7. The new Arizona crypto law allows the state to take control of digital assets that remain unclaimed for three years. Owners must respond to official contact during this time. If they do not, the crypto will be considered abandoned. Under HB 2749, Arizona can keep these abandoned digital assets. The law authorizes the state to earn rewards through staking and accept airdrops linked to those assets. These proceeds must be transferred to the Bitcoin and Digital Asset Reserve Fund. Arizona House Representative Jeff Weninger, who sponsored the bill, said in a May 7 statement, Weninger also said the measure protects property rights while recognizing the value of crypto under the Arizona crypto law. HB 2749 sets a legal framework for how Arizona can handle unclaimed crypto without infringing on ownership rights. Bitcoin Reserve Fund created without public funds HB 2749 establishes a new Bitcoin Reserve Fund. This fund will hold rewards from staking and airdrops gained through abandoned digital assets. The Arizona crypto law makes clear that the fund will not receive money from the state budget or taxpayers. Arizona’s custodians are allowed to manage and grow the fund using crypto-native tools. However, the law does not explain how staking will work or which digital assets will be eligible. The Arizona Bitcoin policy leaves those decisions open to future clarification. This reserve fund supports Arizona’s efforts to classify unclaimed crypto as a new type of property. It also gives the state a method to engage with digital assets without using state funds. Governor Katie Hobbs vetoed earlier Bitcoin investment bill Governor Hobbs signed HB 2749 just four days after she vetoed Senate Bill 1025. That separate proposal would have allowed Arizona to invest public funds in Bitcoin. Hobbs rejected the measure due to concerns over risk and the use of state money on crypto. Despite that veto, her approval of HB 2749 signals support for more structured Arizona Bitcoin policy development. This law does not use general funds but instead handles unclaimed crypto specifically. On social media platform X, Bitcoin Laws founder Julian Fahrer said the new Arizona crypto law could lead to further action. He noted that Senate Bill 1373, which would allow Arizona to invest 10% of its Budget Stabilization Fund into Bitcoin, is still waiting for Hobbs’ decision. Other states also act on abandoned digital assets The signing of HB 2749 adds Arizona to a list of U.S. states defining rules for unclaimed crypto. The law’s approach differs from traditional seizure laws by creating a specific reserve fund and limiting the use of public money. One day before Hobbs signed HB 2749, New Hampshire Governor Kelly Ayotte approved House Bill 302. That bill allows the state’s treasury to invest in digital assets with a market capitalization over $500 billion. At the time of writing, Bitcoin is the only crypto that meets that requirement. Arizona’s new policy targets only abandoned digital assets. But with more crypto-related bills under review, the state could expand its approach to digital currency.