Arizona has made a bold move toward cryptocurrencies by adopting a new law that will change the public management of digital assets.
Adoption of the New Bill
On June 24th, the Arizona House of Representatives voted 34 to 22 in favor of **Bill HB 2324**. This bill, already approved by the Senate, aims to establish a fund called the 'Bitcoin and Digital Assets Reserve Fund.' It will be entirely financed by crypto-assets confiscated during corruption proceedings.
Management of the Crypto Reserve
The reserve will be managed by the State Treasurer, who can invest or resell the funds according to market conditions. The law strictly specifies the distribution of profits from cryptocurrency sales: the first $300,000 will be transferred to the state's anti-racket fund, while the remaining amount will be split: 50% for this same fund, 25% for the general budget, and 25% for the new crypto reserve.
Context of Crypto Legislation in Arizona
This bill is part of a series of legislative proposals regarding cryptocurrencies in Arizona. Some have recently been blocked by Governor Katie Hobbs. However, she shows a measured openness toward the crypto sector, as evidenced by her approval in May of the HB 2749 law, which authorizes the custody of unclaimed digital assets in their native form and the redirection of crypto staking earnings toward public funds.
With the adoption of HB 2324, Arizona is attempting to profit from digital crime to strengthen its public reserves and establish an unprecedented legal framework for crypto asset management.
