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Abandoned Cryptocurrencies

Arizona Passes Law to Claim Abandoned Cryptocurrencies

On May 7, 2025, Arizona Governor Katie Hobbs signed a new law allowing the state government to claim ownership of cryptocurrencies that have been abandoned for more than three years. This legislation, part of House Bill 2749, sets the foundation for creating a Bitcoin and Digital Asset Reserve Fund, without using taxpayer money or the public budget.


Key Details of HB 2749

ClauseDescription
Law TopicClaiming digital assets abandoned for 3+ years with no response from owners
Executive ToolEstablishment of a “Bitcoin and Digital Asset Reserve Fund”
Permitted FunctionsStaking crypto, receiving airdrops, and allocating rewards
Funding SourceNo use of public or taxpayer funds
Stated ObjectiveProfessionally managing unused digital assets for the benefit of the state


Educational Section: What Is an Abandoned Digital Asset?

An abandoned digital asset refers to cryptocurrencies, tokens, or similar holdings that have been left unused for an extended period—at least three years under this law—where the owner has not responded to identification attempts or account activity prompts.

Abandoned Cryptocurrencies


🔍 Why Does This Matter?

  • Millions of dollars in crypto are stored in wallets where keys are lost or owners are unreachable.
  • Some states and countries are seeking legal frameworks to recover or manage such dormant assets.
  • Laws like this aim to balance individual property rights with the economic value of unused assets.

The approval of HB 2749 marks Arizona’s entry into proactive digital asset regulation. The law positions the state as a pioneer in managing unclaimed cryptocurrencies.

Allowing the state to stake crypto assets and participate in airdrops introduces a new model of non-tax revenue and could reshape how governments manage digital assets.

However, it also raises concerns about property rights and may require further alignment with federal legal principles and the development of transparent notification protocols for rightful owners.

This move follows Governor Hobbs’ veto on May 3 of a similar bill that would have allowed investing public funds in Bitcoin, signaling her preference for low-risk crypto strategies without public budget exposure.

It may also pave the way for bills like SB 1373, which would allow the state treasury to invest up to 10% of its budget stabilization fund in Bitcoin.

Read More: BTC/USD: Complete Guide to Bitcoin vs US Dollar Analysis


Summary: Opportunities and Risks

Opportunities:

  • Unlocking idle crypto assets as a new source of income
  • Setting a precedent for other U.S. states or global governments
  • Creating a crypto reserve fund without taxpayer burden

Risks:

  • Legal challenges around proving “abandonment”
  • Privacy advocates’ concerns about the state accessing inactive wallets
  • Potential public dissatisfaction if owners aren’t properly notified


Final Thoughts

Arizona’s move could be the beginning of a new wave of digital asset legislation, especially at the state level, as the U.S. continues to search for a balance between innovation and user rights protection in the crypto space.

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