Arizona lawmakers are once again pushing for a bill that would allow the state to manage a reserve fund built from seized cryptocurrencies. House Bill 2324, which failed in an earlier House vote, has been revived following a narrow 16–14 Senate decision on June 19.
The bill aims to establish a “Bitcoin and digital assets reserve fund” funded by crypto confiscated in criminal investigations. These digital assets would be sold on approved crypto exchanges to ensure fair market pricing and transparency. However, the bill also allows some assets to remain in their original form if necessary.
Under the proposed legislation, the first $300,000 from each forfeiture would be deposited into Arizona’s Anti-Racketeering Revolving Fund. Any amount exceeding that would be divided, with 50% going to the anti-racketeering fund, 25% to the state’s general fund, and 25% to the Bitcoin and digital assets reserve fund.
To safeguard seized assets, the bill mandates the use of a secure, state-controlled digital wallet managed by authorized personnel to prevent loss, theft, or unauthorized access. The scope of the bill is limited to assets forfeited through the Attorney General’s office.
In addition to creating the reserve fund, HB 2324 also modernizes Arizona’s asset forfeiture laws by defining how digital assets are handled in criminal cases and providing guidelines to protect innocent third-party owners whose assets may have been used in illegal activities.
This latest legislative effort is part of Arizona’s broader push towards regulating cryptocurrencies. Since 2020, the state has introduced numerous blockchain-related bills covering various aspects of cryptocurrency regulation, from reserve strategies to digital asset custody rules.
Some of these bills have already become law, including a recent measure allowing the state to claim ownership of dormant crypto assets after three years of inactivity. The law also permits the state to stake these tokens or participate in airdrops, with the earnings directed towards public funds.
Despite these advancements, Governor Katie Hobbs has expressed caution in the past. She vetoed a previous proposal for a Strategic Bitcoin Reserve citing concerns over volatility and the unproven utility of such a fund.
As HB 2324 heads back to the Arizona House for a final reading, the fate of the bill and the establishment of a Bitcoin and digital assets reserve fund now lie in the hands of state legislators. If approved, Arizona could set a precedent for other states looking to navigate the complex world of cryptocurrency regulation and asset forfeiture laws.