Arizona Passes Digital Asset Law with New Bitcoin Reserve Fund

Arizona has become the first state to enact legislation that preserves digital assets in their native form for unclaimed property. Signed into law on May 7, 2025, HB2749, championed by Representative Jeff Weninger, updates the state’s unclaimed property laws to address the rising prominence of cryptocurrencies and other digital assets. This bipartisan supported measure not only safeguards these assets but also establishes a Bitcoin and Digital Assets Reserve Fund, positioning Arizona as a leader in financial technology.

The new law addresses the complexities of managing unclaimed digital assets, such as cryptocurrencies, which have become increasingly significant in today’s economy. Under the legislation, digital assets are considered abandoned if the rightful owner fails to respond to communications for three years. Once identified as unclaimed, these assets must be transferred to the Department of Revenue in their original form. Qualified custodians are then authorized to stake these assets, earning rewards or receiving airdrops, which are deposited into the newly created reserve fund. Managed by the State Treasurer, this fund is subject to legislative approval for future appropriations, ensuring accountability and transparency.

A Forward-Thinking Approach to Financial Innovation

Representative Jeff Weninger, Chairman of the House Commerce Committee, emphasized the importance of adapting to technological advancements in finance. He described the law as a proactive step to secure the value of digital assets while respecting property rights. By creating a structured process for handling unclaimed virtual property, Arizona avoids diminishing the value of these assets and opens new financial opportunities for taxpayers without increasing government spending or taxes. Weninger, a small business owner representing Legislative District 13, has been a vocal advocate for policies that position Arizona at the forefront of financial innovation.

This legislation is part of a broader effort by Weninger to advance Arizona’s role in the digital economy. By addressing the unique challenges of cryptocurrencies and other virtual assets, the state sets a precedent for others states. Just yesterday, New Hampshire became the first U.S. state to authorize its treasurer to invest in Bitcoin and other crypto assets.