The Arizona House of Representatives has just passed Bill 2324 with a vote of 34-22, bringing it one step closer to creating a Bitcoin reserve fund and state-managed digital assets. This fund will be exclusively funded by digital assets seized in criminal investigations.
New legal framework for seized digital assets
This bill amends the asset seizure law to clearly include digital assets such as Bitcoin, stablecoins, and other cryptocurrencies. It establishes procedures for seizing, storing, and selling these assets.
According to the bill, the first $300,000 from any seized digital assets will be transferred to the Attorney General's Office. The remaining proceeds will be split between the state's general budget and the new digital asset reserve fund.
Governor's perspective and related laws
This is Arizona's second digital asset reserve law this year, following Bill 2749, which Governor Hobbs signed in May, allowing Arizona to hold unclaimed cryptocurrency in its original form and transfer staking rewards into the state fund.
Governor Hobbs has a history of supporting stricter oversight of cryptocurrencies but has hesitated to expose state funds to the crypto market. In May, she vetoed a bill allowing investment of up to 10% of the state treasury and pension funds in Bitcoin, as well as a proposal to create a state-managed digital asset reserve fund from seized assets, citing market instability. However, she has also signed bills aimed at regulating the industry, such as Bill 2387, which imposes stricter rules on cryptocurrency ATMs to combat fraud and money laundering. Bill 2324 now places another significant policy decision in the hands of the Governor.