Arizona Senate Advances Bitcoin Reserve Expense Proposing State-Managed Fund for Seized Digital Assets
Arizona’s Senate has actually approved a renewed Bitcoin Reserve Bill aimed at creating a state-managed digital asset fund from crypto seized through criminal forfeiture. The legislation, House Bill 2324 (HB 2324), proposes a structured approach to handling digital assets, including options to hold, sell, or store seized cryptocurrencies securely. According to COINOTAG, this bill represents a significant step in formalizing digital asset management within state law, showcasing Arizona’s growing role in crypto policy. Arizona Senate passes HB 2324 to establish a digital asset fund for seized cryptocurrencies, advancing state-level crypto regulation and asset management.
Arizona Senate Advances HB 2324 to Establish Digital Asset Reserve Fund In a narrow 16-14 vote, Arizona’s Senate has passed House Bill 2324, reviving the effort to create a Bitcoin and Digital Assets Reserve Fund. This fund is designed to manage cryptocurrencies and other digital assets confiscated through criminal forfeiture. The bill outlines a comprehensive framework that empowers the state treasurer to oversee the fund’s operations, including secure storage in state-approved wallets, liquidation through licensed exchanges, or retention of assets in their native form depending on market conditions and security considerations. This legal move follows earlier efforts that stalled in the House but were revived through procedural maneuvers, signaling strong legislative interest in formalizing digital asset management. The bill also updates Arizona’s forfeiture laws to explicitly include digital assets, establishing clear custodial responsibilities and regulatory oversight, which is crucial for legal clarity and operational transparency.
Context of Arizona’s Crypto Regulatory Landscape and Legal Momentum Arizona has become a notable player in the evolving landscape of state-level cryptocurrency regulation. Since early 2023, the state has introduced several crypto-related bills, reflecting a broader national trend towards defining digital asset frameworks. Governor Katie Hobbs has signed key legislation, including House Bill 2749, which created a fund for abandoned digital assets, and House Bill 2387, which enforces consumer protection standards on crypto ATMs. However, the governor has also exercised caution by rejecting more aggressive proposals, such as Senate Bill 1025, which would have allowed state investment of up to 10% of treasury and pension funds in digital assets, citing concerns over risk exposure to public retirement systems. Similarly, Senate Bill 1373, which proposed a reserve fund for crypto acquired through seizures and legal appropriations, was vetoed earlier this year.
