Bill HB 2324 establishes a state reserve fund in cryptocurrencies to manage digital assets confiscated by authorities: the decision now lies with the Governor.
On June 24, the Arizona House of Representatives gave the green light to bill HB 2324 with 34 votes in favor and 22 against. The measure, now awaiting final approval from Governor Hobbs, represents a new initiative in the state management of seized cryptocurrencies.
The bill had already been passed by the Senate the previous week with 16 votes in favor and 14 against, after suffering a setback during its final reading in the House last May.
HB 2324 grants the State Treasurer the authority to establish the “Bitcoin and Digital Assets Reserve Fund”, a dedicated fund for overseeing digital assets obtained through criminal forfeiture. The legislation will allow the state to invest, reinvest, and divest in cryptocurrencies or exchange-traded funds (ETFs) containing digital assets.
This legislation would represent Arizona’s second measure aimed at establishing a state Bitcoin reserve. Last month, the state enacted HB 2749, focused on unclaimed and abandoned digital assets, while HB 2324 specifically addresses cryptocurrencies acquired through confiscation.
The bill precisely outlines how proceeds from the sale of confiscated digital assets will be allocated. The first $300,000 will be directed to the Anti-Racketeering Revolving Fund. For amounts exceeding that threshold, 50% will continue to fund the same anti-racketeering fund, 25% will be allocated to the State General Fund, and the remaining 25% will go to the newly established Bitcoin and Digital Assets Reserve Fund.
