Arizona’s Bitcoin Reserve bill ‘HB2324’ passed the House

Arizona’s House of Representatives has passed the Bitcoin Reserve bill (HB 2324) in a 34-22 vote, setting the stage for Governor Katie Hobbs to sign a proposal that would let the state build a reserve of seized digital assets, including Bitcoin.

The HB 2324 reserve bill gives the state of Arizona the authority to set up a “Bitcoin and Digital Assets Reserve Fund” using cryptocurrencies obtained through criminal forfeiture.

Once signed into law, this bill would become the second state-level measure in Arizona to establish a crypto-based state reserve.

HB 2324 was initially voted down in the House during its third reading on May 7. However, the state Senate agreed on Thursday to revive the bill after Republican Senator Jane Shamp, who had voted against it, filed a motion to reconsider. 

The reconsideration vote in the Senate followed party lines almost entirely, with Republican Jake Hoffman as the lone GOP member opposing the bill. At that time, it passed the Senate in a 16-14 vote.

Arizona could also claim abandoned digital assets

Under the terms of HB 2324, the first $300,000 in digital assets seized during a criminal forfeiture would go to the Attorney General’s office. 

Any value beyond that threshold would be divided so that 50 percent continues to the Attorney General, 25 percent moves into the state general fund, and the remaining 25 percent is deposited into the new reserve fund.

The bill, sponsored by Republican Senator Jeff Weninger, also broadens Arizona’s forfeiture statutes to cover digital assets. It lays out rules for seizing, storing, and allocating these assets. 

The state of Arizona could claim digital assets from individuals who are deceased, deported, have fled, have gained immunity, or have abandoned it. Of course, officials will have to prove that there is no known owner, that they made diligent efforts to find one, and that no one else has stepped forward to claim it.

Earlier this month, on May 7, Governor Hobbs also signed HB 2749 into law. That measure similarly permits Arizona to retain unclaimed cryptocurrency and form a Bitcoin reserve fund without tapping taxpayer dollars or state funds.

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