according to the article, - By Maxwell Mutuma
Arizona has just proposed a state bitcoin storage, powered by criminal cryptocurrency
Arizona lawmakers returned bill 2324 after an unsuccessful final vote in the House of Representatives earlier. The bill proposes to create a bitcoin reserve using confiscated digital assets and outlines new management rules for them. After the Senate passed it by a narrow margin of 16-14 votes, the bill returns to the House of Representatives for a new vote.
Arizona's Bill 2324 describes the formation of a bitcoin reserve for the secure management of confiscated digital assets. The bill allows authorities to seize, store, and sell digital assets related to criminal cases. It proposes that the state treasurer of Arizona control and invest the assets or convert them into an ETF.
The bill also details how the state will share the revenues from these confiscated assets. The first $300,000 will go directly to the Attorney General's office for operational needs. The remainder is shared between the Attorney General's office, the state general fund, and the Bitcoin Reserve.
Arizona lawmakers intend to combat digital asset crimes and asset storage through this legal framework. The bill allows digital assets to remain in their own formats but requires the use of secure digital wallets managed by the state. The new system ensures controlled access to prevent theft or unauthorized use of stored cryptocurrencies.
Bitcoin Reserve
The bill aims to create a Bitcoin Reserve Fund
Bitcoin Reserve faces a previous veto history
Despite Senate approval, the future of the Bitcoin Reserve bill remains uncertain due to past rejections by the governor. Governor Katie Hobbs previously vetoed three similar measures regarding digital asset reserves and cryptocurrency payments, including Senate bills 1025, 1024, and 1373.
SB 1025 proposed a direct Bitcoin Reserve but did not receive the governor's support. SB 1024 aimed to allow payments to state entities using cryptocurrency. SB 1373 focused on a strategic reserve fund for digital assets; however, it was also vetoed.
Governor Hobbs defended her position by referencing bill 2749, which regulates unclaimed digital property. This bill allows the state to claim ownership of digital assets after a prolonged period of owner inactivity. Despite the similarities, HB 2324 differs in that it uses confiscated rather than unclaimed assets to fund the bitcoin reserve.
The legislation includes a provision to protect innocent asset owners who are unaware of illegal use. These individuals can file lawsuits to reclaim their digital property. Authorities must prove criminal connections before permanently confiscating any asset.
Arizona aims to make its bitcoin reserve a secure state-managed account rather than a speculative investment tool. Depending on the treasurer's strategy, the funds may also be converted into an ETF. By creating a formal legal structure, the state plans to reduce abuse and increase financial transparency.
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