Arizona Pioneers Cryptocurrency Legislation with House Bill 2749
In a groundbreaking move, Arizona has introduced House Bill 2749, a legislative measure that significantly overhauls the state’s unclaimed property code to include cryptocurrencies. This innovative bill establishes a “Bitcoin & Digital Assets Reserve,” uniquely funded through abandoned digital holdings. By signing this bill into law, Governor Katie Hobbs makes Arizona the second state in the nation, following New Hampshire, to adopt a statutory framework for incorporating Bitcoin into public reserves. However, Arizona sets itself apart by mandating that unclaimed digital assets be transferred to the state in their original form, rather than being liquidated for cash.
Arizona’s Bold Step in the Cryptocurrency Arena
Gaining bipartisan support, HB 2749 was championed by Rep. Jeff Weninger, the Republican chair of the House Commerce Committee. In unveiling this forward-thinking law, Weninger emphasized the necessity of adapting to the current economic landscape. “Digital assets are not just the future—they’re the present,” he asserted. The legislation aims to ensure Arizona capitalizes on the value of unclaimed digital currencies, positioning the state as a leader in the management and utilization of digital assets.
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Weninger further highlighted that the new statute safeguards property rights, respects ownership, and equips the state with tools to account for this emerging economic category. According to the law, a digital asset is considered abandoned if the owner does not respond to outreach attempts over three years. At that point, these assets—including Bitcoin, Ether, and other cryptocurrencies—must be transferred directly to the Arizona Department of Revenue. The law permits qualified custodians to stake proof-of-stake assets, receive airdrops, and collect other on-chain distributions from these unclaimed wallets.
Strategic Financial Management and Fiscal Responsibility
The revenue generated from these assets, along with any reclaimed coins, is deposited into the Bitcoin and Digital Assets Reserve Fund. This fund is managed by the State Treasurer and is subject to standard legislative appropriations. Importantly, the law stipulates that no funds from the state’s general fund or other taxpayer-supported pools can be appropriated, making the measure “budget-neutral,” as its advocates emphasize.
The Satoshi Action Fund, a nonprofit organization that assisted in drafting the legislation, praised the bill as a model for other regions. “Arizona has demonstrated how to transform overlooked assets into a shield against inflation,” stated Dennis Porter, the organization’s CEO. “With HB 2749, lawmakers have transformed dormant funds into digital gold without tapping into taxpayer resources. It’s a triumph for fiscal prudence and for Arizonans who value sound monetary practices.”
Distinct Approach Compared to New Hampshire
Governor Hobbs’ endorsement of HB 2749 came shortly after her veto of Senate Bill 1025, which proposed a broader use of public funds for Bitcoin investments. In her veto, Hobbs cited concerns about investing public money in “untested assets.” However, HB 2749, limited to property already held in trust for missing owners, seemed to address these concerns. Attention now shifts to Senate Bill 1373, awaiting the governor’s decision, which would authorize the Treasurer to allocate up to 10% of Arizona’s Budget Stabilization Fund to Bitcoin investments.
The enactment of HB 2749 comes on the heels of New Hampshire’s recent foray into the Bitcoin landscape, where the state approved a Bitcoin Strategic Reserve, allowing investment of up to 5% of total funds. This legislative wave marks a significant shift in how states are approaching digital assets.
As of the latest market update, Bitcoin (BTC) is trading at $99,348, inching closer to the coveted $100,000 mark.
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