Key Takeaways
- Arizona's Senate voted to revive a Bitcoin reserve bill after its initial House failure.
- HB 2324 would allocate forfeited digital assets among the Attorney General, state fund, and a new reserve fund.
- Governor Hobbs signed a law allowing Arizona to hold unclaimed Bitcoin but vetoed other reserve-related bills over volatility concerns.
Arizona’s Senate voted 16-14 to revive House Bill 2324, a measure that would create a “Bitcoin and Digital Assets Reserve Fund” for managing forfeited digital assets.
The bill, backed mostly by Republicans, was initially rejected in the House on May 7, but after a motion to reconsider by Senator Jane Shamp, it will return to the chamber for another vote.
Republican Jake Hoffman was the only party member to oppose the bill in the Senate.
Fund allocation and forfeiture provisions
If HB 2324 passes, the first $300,000 in digital assets seized through criminal forfeiture would go to the Attorney General’s office.
Additional amounts would be split: 50% to the Attorney General, 25% to the state’s general fund, and 25% to the new reserve fund. The bill, sponsored by Senator Jeff Weninger, also expands Arizona’s forfeiture laws to specifically include digital assets, setting rules for their seizure, storage, and distribution.
Assets could be seized from deceased, deported, or absent individuals if ownership cannot be established after diligent search.
Governor’s recent actions on bitcoin bills
Governor Katie Hobbs signed HB 2749 on May 7, allowing Arizona to keep unclaimed bitcoin and establish a reserve fund without using taxpayer money or state funds.
The law also enables the state to stake bitcoin or receive airdrops, with proceeds allocated to the reserve fund.
However, Hobbs vetoed two other bitcoin reserve bills in May, citing concerns about exposing state funds or retirement accounts to the volatility of bitcoin.
In her veto letter, Hobbs stated:
“Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars. I have already signed legislation this session which allows the state to utilize cryptocurrency without placing general fund dollars at risk.”
