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 a press release on the governor’s website.It updates the state’s unclaimed property rules to include cryptocurrencies.
House Bill 2749, sponsored by Jeff Weninger, creates a system for handling abandoned virtual property. It sets up a Bitcoin and Digital Assets Reserve Fund. This fund can be used for future state needs with legislative approval.
Weninger said, “Digital assets are already part of our economy. We’ve created a framework that protects property rights and respects ownership.”
Under the law, if owners don’t respond to communications for three years, their digital assets are considered abandoned.Thes assets must then be handed over to the Arizona Department of Revenue in their original digital form. The state can stake these assets or accept airdrops, with proceeds going to the reserve fund. The fund doesn’t use taxpayer money. Instead, it relies on staking rewards and airdropped tokens.
Key points include:
- Abandoned digital assets are transferred to the state after three years.
- The state can stake these assets or accept airdrops.
- Proceeds go to a reserve fund managed by the state treasurer.
This law follows New Hampshire’s similar legislation. It allows investment in cryptocurrencies with a market cap over $500 billion, currently only Bitcoin.
Arizona’s move avoids using public funds on untested assets, unlike a recently vetoed bill. This new law ensures the state can manage and benefit from digital assets without risking taxpayer money.
