- The Arizona Senate passed House Bill 2324 with a 16-14 vote, aiming to create a state managed Bitcoin and Digital Assets Reserve Fund.
- The bill authorizes the Arizona State Treasurer to manage seized digital assets by retaining them, converting them to fiat currency or storing them in secure custodial wallets.
- HB 2324 represents Arizona’s most significant move toward integrating digital assets into public asset management.
The Arizona Senate has approved a renewed version of the “Bitcoin Reserve Bill”, which aims to establish a state managed fund for digital assets seized in criminal investigations.
House Bill 2324 passed the Senate on Thursday in a narrow 16-14 vote and now moves to the state House for final debate.
The legislation seeks to create a Bitcoin and Digital Assets Reserve Fund managed by the Arizona State Treasurer to securely hold and manage cryptocurrencies and other digital assets seized through criminal forfeiture.
Under the proposal, the state would have the authority to either retain digital assets in their native form, convert them into fiat currency through licensed exchanges, or store them in approved custodial wallets. The action will consider market conditions and security considerations.
The bill also amends Arizona’s forfeiture statutes to formally recognize digital assets and establish specific custodial guidelines.
Originally introduced in February, HB 2324 made initial progress through both chambers before failing a final House vote last month. Lawmakers revived the measure through procedural motions to reconsider, allowing it to re-enter the legislative process.
Arizona’s crypto regulation journey
Arizona is among a growing number of states moving to define legal frameworks for digital assets in the wake of President Donald Trump’s return to office.
Earlier in May, Governor Katie Hobbs signed the state’s first digital asset reserve law, which created a fund for abandoned digital assets. She also approved a bill, which introduced consumer protection regulations for digital asset ATMs operating in the state.
However, Hobbs has taken a cautious approach to broader crypto initiatives. In May, she vetoed a bill, which would have allowed up to 10% of the state’s treasury and pension funds to be invested in digital assets, citing concerns over financial risk. She also rejected another bill, a previous proposal to establish a reserve fund for digital assets acquired through seizures and legislative appropriations.
As such, if House Bill 2324 is approved by the House and signed into law, it would mark Arizona’s most significant step yet in integrating cryptocurrency into its public asset management systems.