Arizona Bitcoin Bill Revived
Arizona Senate Revives Bitcoin Reserve Bill
An Arizona bill proposing a Bitcoin and digital assets reserve fund has been revived. After initially failing in the House, Senate action sent House Bill 2324 (HB 2324) back for reconsideration.
The Senate voted 16-14 to reconsider the Republican-backed bill, largely along party lines. Republican Senator Jane Shamp, who initially opposed the bill, filed the motion for reconsideration. Only a legislator who initially voted against a bill can do so.
HB 2324 now needs a majority vote (33 votes) in the 60-member Arizona House to reach Governor Katie Hobbs' desk.
Bill Details: Allocation of Seized Digital Assets
If passed, HB 2324 will allocate seized digital assets as follows:
- The first $300,000 goes to the Attorney General's office.
- Amounts exceeding $300,000 are split: 50% to the Attorney General, 25% to the state general fund, and 25% to the new digital assets reserve fund.
The bill also expands Arizona's forfeiture laws to include digital assets, outlining procedures for seizure, storage, and allocation. The state can seize assets from individuals who are deceased, deported, have fled, or have abandoned the property, provided certain conditions are met.
Arizona's Crypto Landscape: A Mixed Bag
While HB 2324 faces an uncertain future, Governor Hobbs has already signed one Bitcoin bill into law (HB 2749), allowing the state to retain unclaimed cryptocurrency and create a Bitcoin reserve fund without using taxpayer money. The state’s custodians can even stake the crypto to earn rewards or receive airdrops.
However, Governor Hobbs vetoed two other crypto bills: SB 1025 (proposing a strategic Bitcoin reserve using up to 10% of state funds) and SB 1373 (creating a Digital Assets Strategic Reserve Fund). Her vetoes cited concerns about volatility and the risk to taxpayer funds.
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