House Bill 2324 Returns for Second Vote After Initial Rejection
The Arizona Senate has revived House Bill 2324, a proposal aimed at creating a “Bitcoin and Digital Assets Reserve Fund.” This comes after the bill was previously rejected during its third reading in the Arizona House on May 7. On June 20, the Senate voted 16-14 in favor of reconsidering the measure, sending it back to the House for another vote.
The revival was made possible by a procedural motion from Senator Jane Shamp, the only Republican who had originally voted against the bill. Under state rules, only a legislator who voted “no” can call for a reconsideration.
Bill Proposes Allocation of Forfeited Crypto Assets
If passed, HB 2324 would establish a fund specifically for managing forfeited digital assets. The first $300,000 worth of assets seized through criminal forfeiture would go directly to the Attorney General’s office. Any amount beyond that would be split as follows:
- 50% to the Attorney General
- 25% to the state’s general fund
- 25% to the Bitcoin and Digital Assets Reserve Fund
The bill also expands Arizona’s forfeiture laws to include digital assets, allowing seizure and custody of crypto from individuals who are deceased, deported, missing, or untraceable, provided due diligence fails to identify a legal owner.
Governor Hobbs Signs and Vetoes Crypto Bills
Governor Katie Hobbs has taken a mixed approach to crypto legislation. On May 7, she signed HB 2749, which allows the state to retain unclaimed cryptocurrency and establishes a reserve fund without relying on taxpayer money. The state can also stake crypto assets or accept airdrops to grow the fund.
However, Hobbs vetoed SB 1025 and SB 1373, both of which proposed broader use of public funds for digital asset investment. She cited concerns over market volatility and financial risk to the state’s general fund and retirement investments.
“I have already signed legislation which allows the state to utilize cryptocurrency without placing general fund dollars at risk,” Hobbs stated in her veto explanation.
Conclusion
With House Bill 2324 now heading back to the Arizona House, lawmakers must decide whether to move forward with creating a structured Bitcoin reserve framework using forfeited assets. If approved, it could mark another step toward state-level digital asset integration, even as officials tread cautiously on broader crypto investments.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.