Arizona revives bid for seized crypto reserve fund through House Bill 2324

Arizona lawmakers are revisiting a previously rejected bill that would allow the state to manage a reserve fund built from seized cryptocurrencies.

House Bill 2324 failed in an earlier House vote but is back in motion following a narrow 16–14 Senate decision on June 19.

This decision returns the bill to the Arizona House for a final reading. If it secures majority support, it will head to Governor Katie Hobbs for approval.

Bill details

House Bill 2324 outlines a framework for creating a “Bitcoin and digital assets reserve fund,” which would be funded entirely by crypto confiscated in criminal investigations.

These digital assets would be sold on state-approved crypto exchanges or similar platforms to ensure fair market pricing and full transparency. However, the bill permits some digital assets to remain in their native form if needed.

The first $300,000 proceeds from each forfeiture would be deposited into Arizona’s Anti-Racketeering Revolving Fund. Any amount exceeding that would be split as follows: 50% to the same anti-racketeering fund, 25% to the state’s general fund, and 25% to the newly proposed Bitcoin and digital assets reserve fund.

The bill mandates safeguarding seized assets using a secure, state-controlled digital wallet. This storage must be managed by authorized personnel to prevent loss, theft, or unauthorized access. The bill also limits its scope to digital assets forfeited through the Attorney General’s office.

Additionally, HB 2324 modernizes Arizona’s asset forfeiture laws by formally defining how digital assets are treated in criminal cases. It also provides guidelines for protecting innocent third-party owners whose property may have been unknowingly used in illegal activity.

Arizona’s crypto regulatory efforts

HB 2324 reflects a broader trend in Arizona’s growing engagement with crypto legislation.

Since 2020, the state lawmakers have introduced more than a dozen blockchain-related bills, covering everything from reserve strategies to digital asset custody rules.

Some of these bills have since become laws, with the most recent allowing the state to claim ownership of dormant crypto after three years of inactivity.

The law also permits the state to stake those tokens or participate in airdrops, redirecting earnings into public funds.

Despite this progress, Governor Hobbs has expressed caution in the past. She vetoed a previous proposal for a Strategic Bitcoin Reserve, citing concerns over volatility and a lack of proven utility.

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