Arizona Bitcoin Reserve Bill Passes Senate

Arizona Bitcoin Reserve Bill Advances

Arizona's House Bill 2324, aiming to establish a Bitcoin and Digital Assets Reserve Fund, has cleared a significant hurdle. After initially failing, the bill was revived through procedural motions and successfully passed the Senate with a 16-14 vote. It now heads back to the House for final approval.

Bill Details and Implications

Sponsored by Representative Jeff Weninger, HB 2324 seeks to utilize confiscated criminal assets to fund a state-managed digital asset reserve. The bill expands Arizona's forfeiture laws to encompass digital assets, outlining procedures for seizure, storage, and sale.

• The Bitcoin and Digital Assets Reserve Fund will manage these assets.
• The state treasurer will administer the fund, with investment options including digital assets and related ETFs.
• $300,000 of initial proceeds will go to the Attorney General's office, with the remainder split: 50% to the Attorney General, 25% to the State General Fund, and 25% to the Reserve Fund.
• The bill includes provisions to protect innocent owners of seized digital assets.

The bill emphasizes secure storage of seized digital assets, stating, "A digital asset may remain in its native form... must be stored in a state-approved, secure digital wallet system...to prevent loss, theft or unauthorized access."

Governor Hobbs' Stance and Future Outlook

For HB 2324 to pass the House, it needs a majority vote. Even if successful, the bill's future remains uncertain. Governor Katie Hobbs has previously vetoed similar legislation, including SB 1025 (creating a Bitcoin reserve), SB 1024 (allowing cryptocurrency payments for state fees), and SB 1373 (creating a Digital Assets Strategic Reserve Fund). While HB 2749, allowing the state to claim abandoned digital assets, was signed into law, the Governor's prior actions suggest a potential veto for HB 2324.

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