Arizona has passed HB2324, which establishes a fund for Bitcoin financed by seized criminal assets.
Overview of HB2324
HB2324 establishes a state-managed fund for handling digital assets seized through criminal forfeiture. Under this law, Arizona law enforcement can now securely seize and store cryptocurrencies using approved digital wallets. The first $300,000 of seized assets goes to the Attorney General's office, while the rest is distributed: 50% to the Attorney General, 25% to the state's general fund, and 25% to the reserve fund.
Legislative Process
Initially, HB2324 was rejected by the House on May 7, but following heated discussions, it was passed by the Senate on June 19 with a narrow 16-14 vote. Republican Senator Janae Shamp, who previously voted against it, initiated a motion to reconsider the bill, leading to its return to the House where it was passed. It now awaits the signature of Governor Katie Hobbs.
Other Legislative Context
If signed by the governor, HB2324 will become the second Bitcoin reserve-related bill in Arizona. The first, HB2749, was signed earlier by Governor Hobbs and created a fund for unclaimed digital assets. Unlike HB2324, this law does not involve criminal forfeiture. Additionally, two previous attempts to establish a Bitcoin reserve were vetoed due to risk and policy concerns.
The passing of HB2324 reflects a changing landscape in cryptocurrency regulation in Arizona and the potential for safer management of seized digital assets.
