Arizona’s $300K Bitcoin Reserve Plan Advances After 16–14 Senate Vote
After a 16-14 Senate vote, Arizona’s House Bill 2324 is back on track. Originally rejected in May, the bill creates...
Quick overview
- Arizona's House Bill 2324, which creates a Bitcoin and Digital Assets Reserve Fund, has been revived after a 16-14 Senate vote.
- The bill aims to manage and store digital currencies seized by the state and updates forfeiture laws to include digital assets.
- If passed, it will establish a state-run Bitcoin Reserve Fund and adopt modern custody standards for cryptocurrencies.
- Governor Katie Hobbs has previously vetoed two Bitcoin bills this year, citing concerns over market volatility and risks to the state's general fund.
After a 16-14 Senate vote, Arizona’s House Bill 2324 is back on track. Originally rejected in May, the bill creates a “Bitcoin and Digital Assets Reserve Fund” to manage and store digital currencies seized by the state. Introduced in February and passed the Senate earlier this year, the bill stalled in the House until this recent party line vote brought it back to life.
Republican Senator Jake Hoffman voted against the bill, adding to the drama surrounding the bill’s resurrection. The bill now goes back to the Arizona House where it needs 31 votes to pass and then to Governor Katie Hobbs who has already vetoed two Bitcoin bills this year.
Governor Hobbs previously cited crypto market volatility and risk to the state’s general fund as reasons for rejecting similar bills, despite signing a bill that allows cryptocurrency use under safer terms.
What HB2324 Does
HB2324 creates a state managed reserve for digital assets, primarily from criminal asset forfeitures involving cryptocurrencies. It updates Arizona’s forfeiture laws to include digital assets and sets secure custodial standards, including blockchain based access protocols and third party custody options.
If passed the bill will:
- Create a state run Bitcoin Reserve Fund
- Include digital assets in forfeiture laws
- Adopt modern crypto custody standards
The law will streamline how Arizona handles seized cryptocurrencies, bring the legal framework in line with modern financial technology.
How Seized Crypto Would Be Managed
Under HB2324 the state will have three options for managing digital assets:
- Store assets in state authorized digital wallets.
- Liquidate them through licensed cryptocurrency exchanges.
- Retain them in their native form, depending on market conditions.
The distribution model is also clear:
- First $300,000 goes to the Attorney General’s Office.
- Remaining funds split: 50% to AG’s office, 25% to general fund, 25% to the Bitcoin Reserve Fund.
HB2324 is part of a growing global trend to formalize crypto in public finance. Similar discussions are happening in Ukraine and Pakistan as they consider using Bitcoin for reserves.Now that Arizona is reconsidering crypto, HB2324 is the moment of truth for U.S. states to get digital assets into government. But with two vetoes already, it’s not a done deal until it gets to the Governor.
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