Arizona Passes House Bill 2749, Embraces Native Crypto Holdings
In a surprise legislative twist, Arizona Governor Katie Hobbs signed House Bill 2749 into law on Wednesday, allowing the state to retain unclaimed cryptocurrency in its native form, rather than liquidating it. The bill was sponsored by Rep. Jeff Weninger, Chairman of the House Commerce Committee, and positions Arizona as the first U.S. state to legally hold crypto in this way.
This move comes just one week after Governor Hobbs vetoed a separate Strategic Bitcoin Reserve bill, citing risks around “untested investments” and fiduciary responsibility. That proposal aimed to invest seized state assets into Bitcoin—but this new law charts a much less speculative path forward.
What the New Law Does — And Doesn’t
House Bill 2749 modernizes Arizona’s unclaimed property laws by treating digital assets like traditional assets such as stocks or mutual funds. If a crypto account sees no user activity for three years, it is deemed abandoned and must be handed over to the Arizona Department of Revenue—but this time, in its original crypto form. Rather than forcing liquidation, the law allows the state to hold the digital asset itself. This could include Bitcoin, Ethereum, or any other token.
The bill also creates a reserve fund where any staking rewards, airdrops, or earnings from these digital assets will be deposited. These funds can only be used through legislative approval, offering a layer of accountability over potential spending.
One Bill Passes, One Vetoed — Crypto Lawmaking in Arizona
This law differs starkly from the now-vetoed Strategic Bitcoin Reserve Act, introduced by State Senator Wendy Rogers, which proposed using state-seized funds to invest directly in Bitcoin. Governor Hobbs blocked that initiative on May 2, citing its riskiness:
U.S. States Grapple With Crypto Strategy
Arizona isn’t alone in wrestling with crypto policy. A wave of state-level legislation has emerged nationwide, but many have stalled:
- Florida’s HB 487 and SB 550 (up to 10% of funds in Bitcoin) were pulled before a floor vote.
- Similar crypto reserve bills have failed in Oklahoma, South Dakota, Montana, North Dakota, Pennsylvania, and Wyoming.
- New Hampshire, however, just became the first state to authorize public funds for Bitcoin investment, with Governor Kelly Ayotte signing HB 302 into law this week.
A Strategic Yet Conservative Move
While Arizona’s new bill doesn’t greenlight aggressive Bitcoin buys, it marks a turning point in how states approach digital assets. By holding unclaimed crypto in its original form, the state preserves long-term value and acknowledges the legitimacy of decentralized finance, without fully committing to speculative investment. It’s a conservative yet strategic step—one that keeps Arizona in the national conversation, even without a full-fledged crypto treasury.
