Arizona's bitcoin reserve bill, HB2324, gets a second chance after a partisan Senate vote revived the legislation.
Arizona has reinstated House Bill 2324, taking a major step forward in the US's bitcoin reserve vision.
After initially being voted down in the House, the Senate has given new life to the bill by passing a motion to reconsider.
Arizona Reinstates Bitcoin Reserve Bill HB2324
The Arizona Senate passed a motion to revise House Bill 2324, the bitcoin reserve bill initially rejected. After lying dead on May 7, the Senate has now revived it after voting 16-14 in favor of reconsideration. Bitcoin Laws shared this update earlier today in an X post.
In particular, the Senate vote was largely partisan, with most legislators voting along party lines. A notable exception was Republican Senator Jack Hoffman, who aligned with his party to vote against the bill. Introduced in February, HB2324 cleared the Senate in early May but ultimately stalled in the House after failing to gain final approval.
To proceed, HB 2324 needs a majority vote of all 60 members of the Arizona House, with 31 votes in favor being the minimum threshold.
It will then be sent to Governor Katie Hobbs’ desk for approval. Despite the bill's successful revival in the Senate, its future remains uncertain, as the governor has vetoed multiple bitcoin bills. In May, Katie Hobbs vetoed BTC reserve bills like SB 1373 and SB 1024, citing,
Current volatility in the cryptocurrency market does not make a prudent fit for general fund dollars. I have already signed legislation this session, which allows the state to utilize cryptocurrency without placing general fund dollars at risk, which is the responsible path to take.
How will HB2324 work if it passes?
If passed, the Bitcoin Reserve bill would establish a "Bitcoin and Digital Assets Reserve Fund" to manage seized digital assets, joining several other crypto-related bills currently under review by state lawmakers.
Basically, the bill seeks to manage confiscated cryptocurrencies through criminal asset forfeiture. Arizona's renewed interest in the bill is in line with a global trend, as more countries, including Ukraine and Pakistan, are exploring bitcoin reserves.
Importantly, HB 2324 outlines three options for handling these assets. These include storing them in state-sanctioned digital wallets, selling them through licensed crypto exchanges, or keeping them in their native form based on market and security considerations.
The proposed distribution structure for the sale of seized digital assets would allocate the Attorney General’s Office an initial $300,000. The surplus will be split 50/25/25 between the Attorney General, the State General Fund, and the Bitcoin and Digital Assets Reserve Fund.
In addition, the legislation seeks to update Arizona's forfeiture laws to include digital assets and establish modern custody standards, including blockchain-based access protocols and qualified third-party custodians.
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