Arizona lawmakers have voted to revive a bill that expands forfeiture laws to include digital assets and establish a Bitcoin reserve fund.
What is HB 2324?
HB 2324 proposes the creation of a "Bitcoin and Digital Assets Reserve Fund" to manage assets seized through criminal forfeiture. The measure updates existing forfeiture laws to formally include digital assets such as cryptocurrencies, expanding legal definitions to cover virtual currencies and other digital items with economic value.
The bill outlines new procedures for law enforcement agencies to seize, access, and store digital assets, including requirements to use secure, state-approved digital wallets.
Under the proposed allocation system, the first $300,000 worth of forfeited digital assets would be directed to the Attorney General’s office. Any remaining value would be split—50% to the Attorney General, 25% to the state’s general fund, and 25% to the newly established reserve fund.
Comparison with HB 2749
HB 2324 differs significantly from HB 2749, which was signed into law by Governor Hobbs on the same day the former was initially rejected. HB 2749 allows the state to claim digital assets that have remained unclaimed for at least three years, requiring these assets to be transferred to the Arizona Department of Revenue in their original digital form.
Unlike HB 2324, HB 2749 does not deal with criminal forfeiture or law enforcement procedures. Instead, it establishes a regulatory process for identifying and managing abandoned assets, along with a reserve fund that may receive staking rewards or airdrops.
Importantly, HB 2749 prohibits the use of taxpayer money, focusing only on assets already in state possession due to abandonment.
Wider Context of Bill Adoption
Arizona is not the only state taking steps toward integrating digital assets into public finance. Earlier this year, New Hampshire passed House Bill 302, becoming the first U.S. state to authorize its treasurer to invest up to 10% of public funds in Bitcoin and other qualifying digital assets with a market cap of over $500 billion.
The revival of HB 2324 highlights the growing attention to digital assets within the legal frameworks of the United States, as various states continue to explore ways to integrate such assets into their financial systems.
