The Arizona Senate has approved House Bill 2324, which proposes the creation of a reserve fund for confiscated cryptocurrencies. This move strengthens the legal framework for managing digital assets in the state.
Creation of a Crypto Reserve Fund
House Bill 2324 aims to establish a Bitcoin and Digital Assets Reserve Fund overseen by the Arizona state treasurer. The fund will manage cryptocurrencies and tokens seized during criminal investigations and forfeitures, allowing the state to store, sell, or retain crypto assets based on security and market conditions.
Seizure and Distribution Model for Confiscated Assets
HB 2324 introduces a distribution model for proceeds generated from seized digital assets. The first $300,000 in value will go to the Arizona Attorney General's office. Beyond that, proceeds will be divided: 50% to the Attorney General, 25% to the state's general fund, and 25% to the new reserve fund. The bill also amends state forfeiture laws to formally include digital assets.
Legislative Context
The revival of HB 2324 coincides with increased legislative interest in digital assets following President Trump's return to office. Arizona is among several U.S. states pursuing crypto regulation at the state level. Governor Katie Hobbs' previous actions regarding cryptocurrency have shown both support and caution, leading to her signing HB 2749 and vetoing several aggressive proposals.
The passage of HB 2324 highlights Arizona's commitment to adapting its laws to the rapidly evolving digital economy and ensuring lawful management of cryptocurrencies in state governance.
