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Arizona Senate Revives Bitcoin Reserve Bill Amid Rising Interest in Digital Asset Management

Arizona Senate Revives Bitcoin Reserve Bill Amid Rising Interest in Digital Asset Management

CryptonewslandCryptonewsland2025/06/20 13:48
By:by Austin Mwendia
  • Arizona plans to manage seized crypto with a new reserve fund that supports public services and digital asset security.
  • The revived bill allows Arizona to store, sell or hold digital assets seized through forfeiture based on clear guidelines.
  • The proposed fund will not use taxpayer money and aims to support state needs through staking and crypto rewards.

Arizona’s Senate voted to reconsider House Bill 2324 after its earlier failure in the House on May 7. The vote passed 16-14, with most senators following party lines. Only a senator who previously opposed the bill could file the motion. A Republican senator filed the motion to bring the bill back.

🇺🇸 ARIZONA Update:

'Bitcoin Reserve' bill HB2324, which initially failed, has been revived after a 'motion to reconsider'.

The bill would create a fund out of digital assets seized via criminal asset forfeiture.

It passed the Senate today 16-14, and is now in the House. pic.twitter.com/FKmLr8kSmJ

— Bitcoin Laws (@Bitcoin_Laws) June 19, 2025

The bill proposes the creation of a Bitcoin and Digital Assets Reserve Fund. It would help the state manage digital assets taken through criminal forfeiture. The legislation would also expand existing forfeiture laws to include cryptocurrencies. Arizona seeks to modernize how it handles seized digital assets.

Planned Use of Seized Crypto

Under the bill, the first $300,000 from seized digital assets would go to the Attorney General’s Office. Any funds beyond that would follow a fixed split. Half would go to the Attorney General. One quarter would go to the state’s general fund. The final quarter would support the proposed reserve fund.

The bill allows the state to store crypto in secure wallets. It also permits asset sales through licensed exchanges. The state may choose to hold assets in their original form if needed. The decision depends on market conditions and asset security.

All storage must follow strict custodial guidelines. Arizona would use approved third-party custodians. These custodians must meet blockchain access and security standards.

Next Steps in Legislative Process

To move forward, the bill must pass another House vote. It needs support from at least 31 of the 60 House members. Republicans currently hold 33 seats, which may help the bill pass. If successful, the bill will go to Governor Katie Hobbs.

The governor has signed one digital asset bill this year. That bill allows Arizona to hold unclaimed crypto without using taxpayer funds. However, she previously vetoed similar Bitcoin reserve bills. Her vetoes focused on risks to public money and fund safety.

State Eyes Crypto Role Without Public Risk

HB 2324 does not rely on taxpayer dollars. It focuses only on assets seized through forfeiture. Arizona could stake crypto assets or collect airdrops. Any rewards would go into the reserve fund.

Arizona joins a growing number of governments exploring digital reserves. Countries like Pakistan and Ukraine have considered similar plans. The state is aiming to improve digital asset management without risking public funds. Lawmakers are continuing to debate the role of crypto in public finance.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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