Governor Katie Hobbs signed House Bill 2749 into law on Wednesday, paving the way for Arizona to integrate cryptocurrency into its unclaimed property system.
The bill, spearheaded by Representative Jeff Weninger, allows the state to hold unclaimed digital assets in their native form and establish a crypto reserve fund for future use. The assets can be staked by qualified custodians to earn staking rewards or airdrops, providing the state with additional potential value without converting assets to fiat.
Crypto Treated as a Long-Term State Reserve
In a statement from Weninger’s office, the legislation was framed as a way to modernize Arizona’s financial laws. The reserve fund will remain tax-free, and its use will be subject to legislative approval, making it a flexible but controlled financial tool.
“By preserving unclaimed crypto in its native form and creating a Bitcoin and Digital Assets Reserve tax free, we are modernizing our laws to reflect crypto’s position as the future of finance,” Weninger said.
He also emphasized the importance of retaining market value for Arizona residents by avoiding forced liquidation of digital assets.
Growing Trend Toward State-Level Crypto Adoption
Arizona’s move follows New Hampshire, which passed similar legislation earlier this week. These laws reflect a growing willingness among U.S. states to treat digital assets as legitimate financial instruments, particularly in areas like unclaimed property, public finance, and reserves.
The development signals a broader trend of institutional crypto integration at the state level, potentially setting the stage for more states to follow with their own frameworks for managing and leveraging digital assets.