Arizona lawmakers have revived House Bill 2324, which aims to create a reserve fund for managing Bitcoin and digital assets seized through criminal forfeiture.
Overview of the Bill
House Bill 2324 was initially rejected by the House in early May but has now returned for discussion after the Senate voted to reconsider it narrowly at 16-14. The measure, largely supported by Republicans, proposes the creation of a 'Bitcoin and Digital Assets Reserve Fund' to manage assets seized through criminal forfeiture.
Allocation and Seizure of Digital Assets
Under HB 2324, the first $300,000 worth of digital assets seized through forfeiture would be directed to the Attorney General’s office. Any amount exceeding that would be distributed as follows: 50% to the Attorney General, 25% to the state’s general fund, and 25% into the new reserve fund. The legislation also expands existing forfeiture laws to specifically cover digital assets and lays out rules for how the state can seize, store, and redistribute digital assets when no rightful owner can be identified.
Governor Hobbs' Stance on Cryptocurrency
Arizona Governor Katie Hobbs has shown a cautious but not dismissive approach to cryptocurrency legislation. She has vetoed two other crypto-related bills but signed HB 2749, allowing the state to retain unclaimed crypto and deposit it into a Bitcoin reserve fund without using taxpayer dollars. Hobbs emphasizes the need for responsible cryptocurrency integration without exposing the general fund to risks.
House Bill 2324 represents a step toward modernizing Arizona's legal framework concerning digital assets. It must now gain approval in the House before being sent to the Governor for final approval.
