Arizona has passed House Bill 2749, allowing the state to hold unclaimed crypto assets in their original form rather than liquidating them. This law introduces a three-year dormancy period before digital assets must be turned over to the state and establishes a reserve fund to capture earnings from these unclaimed assets. Arizona Governor Katie Hobbs signed the bill into law, modernizing the state’s unclaimed property laws to accommodate digital assets. Assets will be considered abandoned if the rightful owners do not engage with them over three years, aligning this with existing legislation on traditional financial products. The law will also let the state manage unclaimed digital assets without the need to liquidate, thus preserving their value. This legislative progress comes in contrast to the veto of another bill aimed at creating a Strategic Bitcoin Reserve, which was rejected by Hobbs due to concerns about potential risks associated with cryptocurrency investments. The law highlights Arizona's leadership in regulating digital currencies while navigating the complexities of their viability in public funds investment.

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