Arizona Edges Closer To Building Bitcoin Reserve From Seized Crypto As Revived Bill Passes In Senate

Arizona lawmakers revived and voted to advance House Bill 2324 (HB 2324), a proposed legislation to create a state-managed reserves fund for Bitcoin and other cryptocurrencies seized through criminal forfeiture. The bill, which is now cleared to head to the House for the final vote, passed the Senate on Thursday in a narrow 16-14 vote. The legislation failed a final vote in the House in May and was returned to the Senate for revisions. If passed, the bill would authorize the State Treasurer to create the Bitcoin and Digital Assets Reserve Fund to manage crypto assets seized through criminal asset forfeiture. The fund would allow the state government to invest funds in crypto assets or exchange-traded funds (ETFs) holding digital assets. Under the proposed distribution structure, the first $300,000 from seized digital asset sales would go to the Anti-Racketeering Revolving Fund. If the sale surpasses that amount, the remaining balance would be split, with 50% going to the Attorney General, 25% to the state general fund, and 25% to the new Bitcoin and Digital Assets Reserve Fund. The bill modifies Arizona’s forfeiture laws to include procedures for securing lawfully confiscated crypto assets. It requires authorities to either obtain credentials like private keys or seed phrases or move them to a state-approved digital wallet. HB 2324 will need to secure a majority vote from the 60 Arizona House members, 33 of whom are Republicans, for approval to send it to Governor Katie Hobbs’ desk. Arizona is one of many states that have introduced crypto-related legislation since President Donald Trump’s return to office, inspired by a broader national push to establish digital asset frameworks at the state level. New Hampshire is the only state to have successfully completed the legislative process for establishing a BTC reserve. Notably, a bill in Texas, like Arizona, is also in its final stages . Meanwhile, the U.S. Senate recently passed the landmark GENIUS stablecoin bill , which is now headed to the House for further consideration. President Trump urged the House to pass the GENIUS Act as soon as possible so he can officially sign it into law, calling it essential to securing America’s standing as the “undisputed leader” in crypto assets.

Source: ZyCrypto